A non-exempt employee is someone who is not excluded from the Fair Labor Standards Act (FLSA) standards governing minimum wage and overtime compensation. These employees are entitled to at least the federal minimum wage for all hours worked and are eligible for overtime compensation at 1.5 times their normal hourly salary for hours worked in excess of 40 hours each workweek.
Example
If a non-exempt employee works 45 hours in a single workweek and earns $15 per hour, they will receive normal compensation for the first 40 hours ($15 x 40 = $600) and overtime pay for the last 5 hours ($15 x 1.5 x 5 = $112.50). In total, they would make $712.50 that week. Non-exempt personnel frequently include hourly workers, clerical staff, and others whose jobs do not fit the FLSA's qualifications for exemption from minimum wage and overtime restrictions.
