Exempt Employee

What is an exempt employee?  According to the Fair Labor Standards Act (FLSA), exempt employees are paid a set monthly or annual salary instead of hourly pay. This means that these employees may work as much or as little as they need to fulfill the duties of their position. They’re typically salaried employees. They are not…

90 Day Review

What is a 90-day review? A 90-day review is an appraisal that managers and HR professionals conduct 90 days after hiring a new employee or transferring an existing worker to a different position. A 90-day review’s main objective is to gauge an employee’s overall performance and goal progress, as well as evaluate your onboarding and…

PTO Accrual

What is PTO accrual? PTO accrual refers to the process of earning paid time off (PTO) over time rather than receiving a set amount all at once. Employees accumulate PTO based on factors like hours worked, length of service, or a predetermined schedule set by their employer. How does PTO accrual work? PTO accrual works…

Seasonal Employment

What is seasonal employment? Seasonal employment is a temporary form of employment where an organization or company hires workers on a short-term basis. An organization can hire people temporarily to meet growing labor needs, especially during seasons of peak business demand. Seasonal employment is common in businesses that experience peak periods of busyness, such as…

Employment Status

What is employment status? Employment status is the classification of an individual’s working relationship with an organization. It defines their rights, responsibilities, and the terms under which they work, including their entitlement to benefits and protections under labor laws. Why is it important to understand employment status? Understanding employment status is essential for both employers…

Gross Misconduct

What is gross misconduct? Gross misconduct refers to employee actions that employers consider unethical, unprofessional, and short of company standards. What that means in practice varies from one employer to another, depending on a company’s list of gross offenses. However, all employers view gross misconduct as acts that warrant immediate termination of employee contracts. Also…

Direct Report

Direct report meaning A direct report, also known as a subordinate, is an employee who reports directly to a manager or supervisor. This means that the manager has the authority to assign tasks, provide feedback and make decisions that impact the employee’s work. Direct reports are typically responsible for carrying out specific tasks or projects…

Salaried Employee

What is a salaried employee? A salaried employee is an individual who is hired to handle a particular job and is paid a fixed amount of money, regardless of the hours they work per week.  The standard working hours are 40 hours per week, which means a salaried employee receives the agreed-upon salary even if…

Supplemental Pay

What is supplemental pay? Supplemental pay refers to any additional payments employees receive on top of their regular wages. This can include bonuses, commissions, overtime pay, severance packages, sick leave payouts, awards, and tips. Unlike base salaries or hourly wages, these payments often serve as incentives, encouraging employees to perform at higher levels and achieve their…

Operating Budget

What is an operating budget? An operating budget is a comprehensive estimate of an organization’s revenue and expenses over a specified period of time, typically a fiscal year. It outlines expected income from sales or services and the costs associated with running the business, such as salaries, rent, utilities, and materials. This type of budget…