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Salaried: Those who are salaried are paid the same amount each week regardless of how many hours they put in. As mentioned previously, exempt workers must be compensated on a salary basis. Employees who are not excluded from pay may get salaries for a set amount of hours or according to the variable workweek technique. Despite being paid a salary, nonexempt workers are nonetheless entitled to overtime pay under federal and state regulations.
Hourly: A person paid on an hourly basis for services rendered. These people are typically considered nonexempt and are governed by the FLSA's overtime rules due to the way they are paid. Those exempt under the professional exemption, such as teachers, lawyers, and computer experts, may also be compensated on an hourly basis.
Exempt: The FLSA's prohibition on overtime pay does not apply to anyone who meets the requirements to be an executive, professional, administrative, or outside sales employee. Additionally, some computer professionals might not be eligible. Except for a few circumstances, exempt employees need to be paid a wage.
Nonexempt: workers must be paid overtime for any hours beyond 40 in a workweek if they are not exempt from the FLSA's overtime rules (as well as any state overtime provisions). Non-exempt workers may receive a salary, pay on an hourly basis, or any other form of compensation.
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