How many hours do salaried employees work?

A salaried employee is someone who gets a fixed amount of monetary compensation regardless of how many hours they work each week. According to the US Bureau of Labor Statistics, as of October 2023, employees in the United States of America work 34.3 hours a week on an average.

Hourly wages vs salaries

According to the Fair Labor Standards Act (FLSA), salaried employees receive a guaranteed amount in a fairly consistent manner every week. Hourly wage workers, on the other hand earn depending on the number of hours they work.

On one hand, hourly workers are entitled to minimum wage and overtime compensation, while salaried employees are not. But, on the other hand, while hourly wage workers are expected to be present for a certain number of hours to earn, salaried employees don’t have to worry about hours, as long as their tasks and responsibilities are completed on time.

While hourly workers can limit their work hours and spend time with family, this arrangement can backfire when business owners reduce work hours to meet their own financial needs. In case of salaried employees, however, employers can’t simply cut down work hours to reduce compensation; changes in salary are harder to negotiate.

Finally, while salaried employees may have added benefits in their contract, like health insurance and paid leaves, hourly wage employees typically don’t receive these. Hourly wage employees are usually not entitled to paid leaves, and may be responsible for their own healthcare.

Salaried workers and overtime compensation

Overtime refers to putting in more work hours than usually required for one or more days. The FLSA classifies employees as exempt and non-exempt. Whether an employee is classified as exempt depends on whether they are entitled to overtime pay and minimum wage, the nature of their work and mode of compensation. There are two tests that determine whether a salaried employee is considered exempt under the act- the salary level test and the duties test.

Salary level test

The salary level test determines whether an employee will get guaranteed minimum wage. If the employee’s salary is at least $684 per week or $35,568 per year, then they are classified as exempt, meaning that they are not entitled to minimum wage and overtime compensation.

Duties test      

If the salaried employee in question performs duties in the executive, administrative or professional categories, then they are exempt, i.e., not entitled to overtime pay and minimum wage.

In today’s professional landscape, remote work arrangements and flexible modes of communication have made it more difficult for employees to maintain a work life balance. Hence, if a salaried employee is not entitled to overtime pay, then it becomes especially important to look at weekly work hours before accepting a position.

Factors influencing work hours

Industry and title

Some industries are more demanding than others, like healthcare and finance. In places where work has life and death consequences, or results in huge gains or losses to the organization, work hours are not only long, but also intense.

Moreover, in any industry, employees who are higher up in the organizational hierarchy, have more responsibilities, and have more people working under their supervision typically work longer hours. In fact, sometimes employees in leadership roles are expected to work overtime even though they are not compensated for it.

Work policies

Some organizations allow employees to work from home or have a hybrid policy, wherein employees come to the office on a few days of the week, and work from home for the rest. While most organizations are recognizing the benefits of such arrangements, it is a privilege reserved for a select few who can afford to have an office-like space at home.

Moreover, in some cases the nature of work doesn’t allow for an online option. For example, a surgeon, a domestic help employee or an assembly line worker cannot possibly do their work from home. People who are able to work from home can often adjust their work hours as per their daily schedule, and can take more frequent, longer breaks.

Organizational culture

Organizational culture refers to the norms and values that guide the behaviour of employees in an organization. Some organizations value productivity to the extent that employees are expected to work overtime as often as required. For example, Maartje (2020) found that work culture has a significant positive impact on performance.

For example, Infosys founder Narayan Murthy made a controversial statement proposing a 70-hour workweek for young Indians. Similarly, several employees of an American social media company, X (formerly Twitter) raised concerns about the CEO’s mention of a “hardcore work culture”.

Some organizations, on the other hand, emphasize on work life balance and recognize the importance of employees’ mental health. If you find yourself putting extra hours at a place that doesn’t appreciate and compensate you for it, that might be a red flag. It is important to ensure that your company takes care of your mental health and prevents employee burnout.

Cultural norms

Apart from organizational culture, the culture of a specific region or country can also influence work hours. For example, countries like Japan and China are known for having brutally long work hours.

Many companies in China follow the 996 working hour system, wherein employees work from 9 am to 9 pm, i.e. the 72 hour work week of Mr. Narayan Murthy’s dreams. The Japanese word Karoshi, literally meaning overwork death, is a widely known term for occupation related sudden death in Japan. It is a result of a decades-long cultural trend that encourages people to overwork themselves to the point of exhaustion.

Hence, the weekly work hours in an employment contract depend on several factors like the industry, role, work culture, and regional cultural norms. In the United States, salaried employees who are not entitled to overtime pay and minimum wage may find it difficult to strike a work-life balance, especially if their organization, industry or culture promotes working overtime without compensation.

If you are a job-seeker or a salaried employee, it is important to consider whether your compensation matches your work hours. There may be local laws and regulations that don’t allow overtime for salaried employees in your region. Educating ourselves about these provisions and staying informed about labor laws is crucial for standing our ground in an exploitative economy.