Employment · HR glossary

Non-Exempt Employee

A non-exempt employee is covered by the relevant wage-and-hour protections, commonly including overtime requirements under the US Fair Labor Standards Act. Coverage depends on the applicable law and circumstances.

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Example

An employer tracks a covered employee's working time and calculates any required overtime according to the governing federal and state rules.

What to keep in mind

Non-exempt does not necessarily mean hourly-paid. Some salaried employees remain non-exempt, and an employer's job title or payroll label cannot replace the required legal assessment.

Non-Exempt Employee

Example

What to keep in mind

Further reading