Which statement best describes salary, hourly wage, and overtime?

• A. Salary is paid per hour; overtime applies only if you volunteer.
• B. Salary changes with productivity; hourly wage never changes; overtime never exists.
• C. Salary is fixed pay; hourly wage is paid per hour; overtime applies for hours worked beyond a set threshold.
• D. Salary pays only benefits; hourly wage covers all duties; overtime reduces pay.

Answer: (C)

The main idea is how different pay structures work and when overtime applies. A salary is a fixed amount paid regularly, not tied to the exact hours you work. An hourly wage is paid for each hour you actually work, so your pay grows with the number of hours. Overtime is additional pay for hours worked beyond a standard threshold, usually at a higher rate. Because of this, the statement that matches is that salary is fixed pay, hourly wage is paid per hour, and overtime applies for hours beyond a set threshold. Note that in real life, some salaried employees may be exempt from overtime, but the general description above is the typical distinction.