When I was hired, the employer asked me - "Which of the three ways should I pay you?" But I don't understand his question.

Short Answer: Your employer likely referred to hourly, salary, or commission-based pay.

Full Answer: When your employer asked, "Which of the three ways should I pay you?" they were probably referring to the three common payment methods used for employees:

Hourly Pay:

• You are paid a fixed hourly rate for each hour worked.
• Eligible for overtime pay (1.5 times the hourly rate) if you work over 40 hours per week under the Fair Labor Standards Act (FLSA).
• Typical for positions with variable hours or where precise time tracking is essential.

Salary Pay:

• You receive a fixed amount each pay period, regardless of the hours worked.
• This applies to exempt employees who do not receive overtime pay but must meet salary and duties tests under the FLSA.
• Suitable for roles with consistent duties and workload.

Commission-Based Pay:

• Pay is based on a percentage of sales or performance metrics.
• Common in sales roles or positions where compensation is tied to achieving specific targets.
• It may be offered as a standalone method or combined with a base salary or hourly rate.

Tip: Ask your employer to clarify the options, including how overtime, benefits, and taxes are handled for each method. Choose the one that aligns best with your work style and financial goals.

General Federal Standard: Payment methods must comply with the FLSA and state wage laws. Employers must disclose pay structure and comply with overtime rules if applicable.