Need to keep a timesheet

Receive a fixed amount of money no matter how many hours worked, usually without overtime pay

There are many differences between a salaried employee and an hourly employee. First, while a salaried employee receives a fixed amount of money, an hourly employee receives an hourly wage for each hour worked. Therefore, salaried workers who meet the criteria as exempt employees do not have to keep track of their hours in the way that hourly employees do. For example, they do not have to sign a daily timesheet.

Most exempt salaried employees do not receive overtime pay. Salaried employees are paid their salary regardless of how many hours they work during a workweek.

This means that many high-paying positions do not receive extra wages, such as time and one-half for working more than 40 hours a week. However, some lower salary positions are still eligible for overtime pay, based on state and federal laws. 

On the other hand, hourly employees are typically able to receive time and one-half of their hourly wage for every hour of overtime work. Some employers even pay double time for holidays, although this is not mandatory.

Also, most salaried employees are considered exempt employees, while most hourly employees are considered non-exempt employees.

There are, however, some exceptions to this rule. For example, there are some exempt employees who are not salaried (such as those who receive a fee for a particular job, like a computer technician). There are also some non-exempt employees who are salaried, but their job duties fall under the definition of non-exempt.

Better sense of security

More likely to receive employee benefits

Higher perceived status

May be expected to work long hours

Usually unable to earn overtime pay

Can be harder to separate personal and work life

Better sense of security. Salaried workers usually receive a dependable, exact, and expected amount of money in each paycheck. This can provide a sense of security.

More likely to receive employee benefits. You're also more likely to receive employee benefits in a salaried position—particularly a full-time salaried position. These benefits often go beyond healthcare to include retirement contributions and paid vacations.

Higher perceived status. In addition, salaried positions often have a higher perceived status and job titles that seem more professional. A work history containing professional job titles can serve as a more marketable foundation for future career expansion.

Usually unable to earn overtime. If you're an exempt salaried employee, you are typically not able to earn overtime pay.

May be expected to work long hours. In general, with a salaried position, you're often expected to do what it takes to complete tasks—meaning you might often work extra hours for no additional salary.

Can be harder to separate work and personal life. Sometimes you may be required to take work home or work late, which can cut into your personal life.

Many categories of workers are exempt from overtime provisions, which means they do not receive overtime pay. For example, some highly compensated, executive, administrative, and professional employees, commissioned sales representatives, computer professionals, drivers, farmworkers, and workers in other exempt occupations may not receive overtime pay.

Some states have enacted more generous overtime laws and higher thresholds for requiring overtime pay for salaried workers. In those locations, the standard (federal or state) that applies is whichever would pay the higher amount. Check with your state department of labor for the current overtime provisions in your area.