What are the advantages of being salaried and exempt versus non-exempt?

Answer 1

For the worker, being salaried and exempt means you're not entitled to demand the minimum wage, overtime pay rates and schedules, and other protections under child labor and equal pay, as prescribed by the federal government's FLSA law. For example, if you're salaried, your boss might ask you to work longer hours some nights or weekends and you won't get the same overtime pay for doing that that your hourly-waged friends would get. However, being salaried has many advantages. It's a steady income and chances are it means you have a better job with more of a career future. I agree with the above answer with one exception. Being salary exempt means you are exempted from the US laws covering overtime pay. It DOES NOT mean you are exempt from the minimum wage law. Since the 1980s, the courts have repeatedly upheld the finding that a salaried employee's rate MUST equal minimum wage. (Several companies, including Pizza Hut and Howard Johnsons, have lost class-action suits on this very matter. Your salary must exceed minimum for the average hours you work.) Salaried employees are expected to put in as many hours as necessary to get the job done. Often, they have higher overall earnings, more responsiblity and more potential for job growth than hourly workers. Be aware that in most salaried positions, working 42 hours this week doesn't mean you can work 38 the next week.