Employers are required by the Fair Labor Standards Act (FLSA) to classify jobs as either exempt or non-exempt. Non-exempt employees are covered by FLSA rules and regulations; exempt employees are not.
Employees who are classified as exempt are excluded from minimum wage, overtime regulations, and other rights and protections afforded non-exempt workers. Exempt employees receive a salary instead of an hourly wage. Generally, only executive, supervisory, professional, or outside sales positions are exempt positions. |
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Non-exempt employees, as the term implies, are not exempt from FLSA requirements. Employees classified as non-exempt must be paid at least the federal minimum wage for each hour worked and given overtime pay of not less than one and a half times their hourly rate for any hours worked beyond 40 each week.
Exempt positions are typically ones where the employee spends most of their time performing job duties that require the use of discretion and independent judgment. Non-exempt, on the other hand, do not require an advanced degree and are not usually managerial or supervisory in nature.
Non-exempt employees can be salaried as well as hourly. Don’t assume that just because employees are salaried, they are exempt from overtime.
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