A non-exempt employee is a worker who is entitled to overtime pay under labor laws, such as the Fair Labor Standards Act (FLSA) in the United States.
Non-exempt employees are typically paid on an hourly basis, although some salaried positions may also qualify as non-exempt.

Employers must track their work hours and compensate them for overtime—usually at 1.5 times their regular pay rate—for hours worked beyond the standard workweek (often 40 hours).

Why the Classification Matters

• Legal Compliance – Ensures adherence to labor laws and avoids penalties.
  
• Fair Compensation – Protects workers from unpaid overtime.
  
• Clear Payroll Management – Helps HR maintain accurate records.
  
• Prevents Misclassification Lawsuits – Correct classification reduces legal risk.
  
• Supports Employee Rights – Guarantees fair treatment in wages and working hours.
  

Common Roles for Non-Exempt Employees

1. Administrative support staff.
   
2. Customer service representatives.
   
3. Retail and hospitality workers.
   
4. Skilled tradespeople.
   
5. Entry-level clerical positions.
   

Best Practices for Managing Non-Exempt Employees

• Accurately track hours worked using timekeeping systems.
  
• Provide clear overtime policies in employee handbooks.
  
• Train managers on scheduling and compliance requirements.
  
• Avoid requiring off-the-clock work.
  
• Regularly review job duties to ensure correct classification.
  

FAQs: Non-Exempt Employee

Q1: How is a non-exempt employee different from an exempt employee?
A: Non-exempt employees receive overtime pay, while exempt employees are not entitled to it under labor laws.

Q2: Can a salaried employee be non-exempt?
A: Yes, if their job duties and salary fall below certain legal thresholds.

Q3: What is the overtime rate for non-exempt employees?
A: Typically 1.5 times the regular hourly rate, though laws vary by region.

Q4: Do non-exempt employees get paid for breaks?
A: Paid break rules depend on local labor laws and company policy.

Q5: Can an employer require overtime for non-exempt employees?
A: Yes, but they must pay the legally required overtime rate.