Salaried position

A salaried position is a job in which an employee is paid a fixed amount each pay period, regardless of how many hours they work.

Homebase Team

Min Read

What is a salaried position?

A salaried position is a job in which an employee is paid a fixed amount each pay period, regardless of how many hours they work. Unlike hourly workers who are compensated for every hour on the clock, salaried employees receive consistent pay, which often aligns with full-time roles and managerial or administrative positions.

If you’re a small business owner hiring for key roles or building out your management team, offering a salaried position can help attract experienced candidates and provide stability. And if you’re ready to streamline how you handle salaried and hourly payroll, sign up for Homebase to simplify time tracking, payroll, and compliance all in one place.

How salaried positions differ from hourly positions

The main difference is how pay is calculated:

Salaried employees earn a predetermined annual amount, divided across pay periods
Hourly employees are paid for every hour worked, and are eligible for overtime

Salaried employees typically have more consistent paychecks, even if their weekly hours vary. But that doesn’t mean every salaried worker is exempt from overtime; classification matters.

Exempt vs. non-exempt salaried employees

Not all salaried workers are the same in the eyes of labor law. Some are exempt from overtime, while others are non-exempt and still qualify.

To be considered exempt under the Fair Labor Standards Act (FLSA), an employee must:

Earn a salary above a certain threshold (currently $684/week federally)
Perform job duties that meet the criteria for executive, administrative, or professional roles

If a salaried employee doesn’t meet those criteria, they’re non-exempt and must be paid overtime for hours worked beyond 40 per week. Getting this classification right is essential to avoid wage violations or penalties.

Pros and cons of salaried positions

Benefits for employers:

More predictable payroll planning
Easier to offer perks like paid time off or benefits
Often associated with higher retention and loyalty

Benefits for employees:

Stable, consistent paychecks
Greater autonomy and trust in many roles
Often eligible for full-time benefits

Potential drawbacks:

May work more than 40 hours per week without extra pay (if exempt)
Requires clear communication around responsibilities and expectations

As a business owner, offering the right compensation structure for the job and your team’s needs is important.

When to offer a salaried position

You might consider offering a salaried role when:

The position involves management, strategy, or planning duties
The employee has a regular, long-term schedule with stable responsibilities
You want to attract high-level talent or retain staff with specialized skills
You need to budget labor costs more consistently

Just make sure the role is structured in a way that aligns with labor law and your business goals.

How Homebase makes payroll easier for salaried teams

Managing salaried employees can be simple if you have the right tools. With Homebase, you can:

Automatically pay salaried employees on a set schedule
Track paid time off and unpaid leave
Monitor hours for non-exempt salaried employees
Keep accurate records for compliance and taxes
Sync payroll with time tracking and scheduling

Whether your team is salaried, hourly, or a mix of both, Homebase helps you stay organized, fair, and compliant.

Explore Homebase payroll to make running payroll easy, accurate, and stress-free, no matter how your employees get paid.

‍

FAQs

No items found.