{ "media_type": "text", "post_content": "Why is every white collar job salaried?\n\nI understand is it legally salary positions are supposed to be for members of management. However the vast hordes of associates and Senior associates in our firms manage nothing. Why are they all paid on salary instead of hourly?\n\nAre there historical, legal, political reasons why this is the case? Does the entire US economy just agree to ignore the law and pretend that everybody who has a white collar job manages something?", "post_id": "61f1a8d194d8b8002be5b696", "reply_count": 11, "vote_count": 1, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting", "feed_type": "crowd" }

Why is every white collar job salaried? I understand is it legally salary positions are supposed to be for members of management. However the vast hordes of associates and Senior associates in our firms manage nothing. Why are they all paid on salary instead of hourly? Are there historical, legal, political reasons why this is the case? Does the entire US economy just agree to ignore the law and pretend that everybody who has a white collar job manages something?

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Historically — you pay someone 40 hours to work 41+ for the same price. The company (and shareholders) win.

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Your FLSA classification is determined by several factors, including your level of expertise, independent decision making, and education required.

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This. Federal regulations.

There are historical reasons. It’s really cultural more than anything else. Your idea that legally salaries are “supposed to be”for management is incorrect.

What law is that?

No such law that I am aware of

What law are you talking about?

Probably began as a form of risk sharing. I still get paid for “40 hours of work” even if I work less but also I still work more than 40 hours if needed, but the company only pays me for 40.

Apparently the term I was looking for was "exempt". "Professional" jobs that require a lot of expertise and training count as exempt. Thanks for your answers.

Not really federal regulations, but more like federal loopholes

Thanks for raising this conversation. I have always felt this should be raised more on a national level to push change. How can it be in such a modern society that there is no regulation to cap the hours salaried exempt employees are expected to work. In europe for example (not citing lucky France) but other countries the contracts have a cap. On the hours expected and if overtime is expected it is limited to occasional occurrences as needed. This may be controversial to say but my european friends have jokingly called it modern day slavery… thinking about it ahould outrage anyone and scream for change!

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