Employees who are payed a set annual wage redardless of the number of hours worked or the amount if work completed are paid on a

A person who is paid a set amount is receiving a salary.

The Fair Labor Standard Act is the legislation that establishes the law for how workers can be paid. Employers cannot pay a worker a salary just to avoid paying them overtime. A salaried employee my be an exempt employee as defined by the act. Some of the criteria for an exempt employee include that the employer supervises other staff members or are a higher level manager in a business.