Non-Exempt Employee

Definition

Workers eligible for overtime pay, also known as 'hourly employees' who at least have the legal protection of getting paid for extra work.

Example Usage

Non-exempt employees must record all hours worked and receive overtime compensation at 1.5x their regular rate.

Origin

Defined in the FLSA as the inverse of exempt status

Fun Fact

Misclassifying non-exempt employees as exempt can result in six-figure lawsuits

Source: Labor law, FLSA compliance

Related Terms

Beginner

attrition rate

The percentage of employees leaving an organization over a specific period, whether by resignation, retirement, or termination. The metric that keeps HR professionals awake at night calculating replacement costs.

👥 Human Resources

Intermediate

deadwood

Employees who contribute nothing but somehow haven't been fired yet, occupying desks and drawing salaries like workplace furniture. HR knows who they are; everyone knows who they are.

👥 Human Resources

Intermediate

Bossware

Employee monitoring software tracking productivity, keystrokes, screen activity, and sometimes location data during remote work. It's productivity theater that assumes workers are fundamentally untrustworthy and need constant surveillance.

👥 Human Resources

Advanced

employer of record

A third-party organization that becomes the legal employer of workers on behalf of another company, handling payroll, taxes, and compliance. It's corporate outsourcing for the actual responsibility of employing people.

👥 Human Resources

Intermediate

Poaching

When another company hires your good employees away. Considered unethical unless your company does it.

👥 Human Resources

Beginner

Org Chart / Organizational Chart

A diagram showing the hierarchy and reporting relationships within a company. It's the visual proof that someone important than you exists.

👥 Human Resources

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