Lesson · 8 min
Salary vs. hourly
The same 'yearly pay' can be very different in practice.
Salaried roles often include benefits and unpaid overtime. Hourly roles get time-and-a-half over 40 hours but rarely include benefits. Comparing raw pay only tells half the story.
Vocab
- Exempt employee
- A salaried worker not entitled to overtime pay under FLSA.
Quick check
1. $50k salary vs. $25/hr hourly — 40hr week only. Which is higher gross?