State and Federal laws and policies outline the differences between hourly and salary employees. Classifications based on the type of work, the weekly hours worked and the amount of employees’ wages (broken down by 2080 hours per year) create the distinction between hourly and salary. Simply put, a salaried employee receives a set amount of wages paid weekly, bi-weekly or monthly. While an hourly employee receives an hourly wage. However, due to the Federal and State classification requirements, just because an employer designates someone as salary, they are not actually salaried unless they meet those requirements and can still be entitled to overtime pay at 1.5 times the employee’s normal wage rate for all hours over 40 hours in one week. The Washington State and Federal salary and hourly classifications can be find on the Washington State Labor and Industries website:

http://www.lni.wa.gov/WorkplaceRights/files/overtime/FedOTCompareChart.pdf

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