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Old 05-17-2018, 08:24 AM
Senior MemberCaptains Club Member
Join Date: Jul 2006
Location: RI
Posts: 6,460

It depends. Are you saying that the salary = the old base pay before overtime? That does not make sense.

Generally, salary can benefit both the employer and the employee. The employer can budget more easily and can essentially control who makes what. A marginal employee working a lot of overtime my be less efficient than, say, a similar employee accomplishing much more without the overtime.

For the employee, the initial year or years of conversion can leave some disparity but over time that disparity should go away. More productive employees are theoretically paid more that less productive. bigger raises, better job opportunities, etc.. Bonus plans may also come into play longer term theoretically rewarding performers even more. Often times more work magically gets done in less time.

This is how it works in the professional fields generally. Neither is perfect.