Benefits of Hourly Pay vs Salaried Pay for Employees

Running head: MANAGEMENT
MANAGEMENT
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Introduction
The Fair Labor Standards Act (FLSA) recognized as federal law primarily summarizes
the policies which explain exempt especially from overtime wage as well as non-exempt
positions (Flsa.com, 2019). Reports of Castrucci et al. (2015) reveal that majority of states
comprise individual laws vis-à-vis overtime and some states in America comprises of supplies
which are highly rigid in comparison to federal guidelines such as California, Alaska
and Nevada. The following paper will analyze the benefits of employees in being hourly paid
than salaried by focusing on the importance of valuing unique skills and competencies of all
employees in the workplace.
Discussion
Recent evaluation of Hanauer and Rolf (2017) have explored that to be successfully
classified as exempt under the policy of FLSA, an employee must be engaged to managerial,
governmental or clerical job responsibilities and further obtain over $23,750 per year. Authors
have noted that remunerated recruits typically are expected to efficiently accomplish assigned
job duties as per their convenience regardless of any specific deadlines. Thus, not considering
hours of performance these salaried employees are being remunerated same amount every
month. Thus, according to Allen, Kelly and National Research Council (2015), salaried
employees who are considered “exempt” are not necessarily permitted to overtime wages if they
deliver additional hours to their company. However, drawing relevance from these factors,
Hassel (2014) has noted that offering proper remuneration to employees fail to protect their
exemptions. Employees receiving remuneration regardless of exempt under the FLSA requires to
receive overtime compensation for their additional hours of performance and work delivery.

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Meanwhile, hourly employees are by and large allocated an extensive range of working time thus
receive remuneration on the basis of the actual working hours (Flsa.com, 2019).
Furthermore, Golden, Henly and Lambert (2014) have state that hourly positions have
often been considered to be “non-exempt,” thus implying their non exemption and eligibility for
overtime wages for delivering more than 40 hours in a week. Flexible schedules have been
considered as an effective means of regulating employee wages specifically regarding overtime
remuneration. As overtime costs have been considered to be beneficial factor for employees, a
proper flexibility management has been identified to be essential into the staffing models of
organisations. Flexibility according to Hanauer and Rolf (2017) is identified as cost and resource
neutral factors while strategizing and employees and productivity expenses of unscheduled
absences are efficiently been circumvented. These innovations in flexibility have provided
nonexempt or hourly employees with proper accessibility towards workforce flexibility which
has developed into productive routine for professional level employees not only for recognized
arrangements but also purposed for occasional flexibility which may be the factor of
dissimilarity between employee attrition and retention. Workplace flexibility along with time-off
policies have been highly decisive to hourly salaried employees to determine employees level of
competence in managing daily life situations which tend to emerge without acquiring penalties in
performance or remuneration. Golden, Henly and Lambert (2014) have stated that although
several employers have promoted policies and employee benefits which offer non-exempt and
hourly waged employees’ proper access to flexibility to both organized “just‐in‐time”flexibility.
Such type of occasional flexibility has been significantly acknowledged by workers resulting to
develop into a decisive factor for professional level employees. However, studies of authors have