Glossary > Employment Law > Employment Rights > Employee Classification

Non-exempt Employee

A non-exempt employee is someone who is entitled to receive at least the minimum wage and overtime pay for hours worked over 40 in a workweek, as mandated by the Fair Labor Standards Act (FLSA). Non-exempt employees are generally frontline workers who are paid by the hour rather than a salary.

Example #1

For instance, a retail sales associate who works 45 hours a week would be considered a non-exempt employee and should receive overtime pay for the additional 5 hours worked.

Example #2

Another example could be a restaurant server who is paid an hourly wage and earns overtime when they work more than 40 hours in a single workweek.

Misuse

Misclassifying employees as exempt when they should be non-exempt is a common issue that can deprive workers of their rightful overtime pay. This practice can harm employees by denying them the compensation they deserve for their extra work hours.

Benefits

Being classified as a non-exempt employee ensures that workers are fairly compensated for their time and incentivizes employers to adhere to labor laws. It protects employees from being taken advantage of by ensuring they receive appropriate pay for overtime hours worked.

Conclusion

Understanding the classification of non-exempt employees is crucial for both workers and employers to ensure fair compensation practices and compliance with labor laws. It contributes to a transparent and equitable work environment that upholds employee rights and fosters a healthy employer-employee relationship.

Last Modified: 4/30/2024