What is Non-Exempt Employee?

A non-exempt employee is covered by FLSA overtime provisions, meaning they must receive at least 1.5x their regular rate for hours worked beyond 40 in a workweek. Most hourly workers are non-exempt. Some salaried workers earning below the $35,568 threshold are also non-exempt. Employers must track non-exempt employees' hours accurately — failure to pay proper overtime is one of the most common wage and hour violations.