non-exempt

Beginner 👥 Human Resources

Definition

Employees entitled to overtime pay under the Fair Labor Standards Act, typically hourly workers. The classification that means you actually get paid for working extra hours, unlike your salaried colleagues.

Example Usage

As a non-exempt employee, I'm thrilled to work this weekend because at least I'm getting time-and-a-half.

Origin

Defined by the Fair Labor Standards Act of 1938

Fun Fact

In 2024, employees earning below $58,656 annually must be classified as non-exempt, finally updating a threshold that hadn't changed significantly since 2004.

Source: Employment law and compensation terminology

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