Side-by-Side Comparison
| Feature | Salaried | Hourly |
|---|---|---|
| Pay structure | Fixed annual amount | Per hour worked |
| Overtime | Usually not eligible (if exempt) | ✅ 1.5x over 40 hrs/week |
| Income predictability | ✅ Same every paycheck | Varies with hours worked |
| Benefits | Often more comprehensive | Varies — often fewer |
| Schedule flexibility | Often more flexible | Typically set schedules |
| Hours tracked? | Usually no | ✅ Yes — required by FLSA |
| Pay docked for missed work? | No (exempt status) | ✅ Yes — no work, no pay |
| FLSA protections | Fewer (if exempt) | ✅ Full FLSA coverage |
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Converting Between Salary and Hourly
To compare job offers with different pay structures:
- Salary to hourly: Annual salary ÷ 2,080 hours (52 weeks × 40 hrs)
- Hourly to annual: Hourly rate × 2,080 hours
| Annual Salary | Equivalent Hourly Rate |
|---|---|
| $40,000 | $19.23/hr |
| $60,000 | $28.85/hr |
| $80,000 | $38.46/hr |
| $100,000 | $48.08/hr |
The overtime trap: salaried isn't always better
If you work significant overtime in an hourly role, your effective compensation can far exceed a comparable salary. A $50k salary is $24/hr — but if you regularly work 50 hours/week in an hourly job at $20/hr, you earn $1,100/week = $57,200/year effective.
Which Is Better for You?
- You value income predictability for budgeting
- You want comprehensive benefits (health, 401k, PTO)
- You're in a management or professional career track
- You prefer flexibility in daily schedule/hours
- You want to be paid for every hour you work
- You work significant overtime and want to be compensated for it
- You want clear separation between work and personal time
- You're in a field that typically pays well hourly (trades, healthcare, tech contracting)