Non-Exempt Employee
Non-exempt employees are entitled to overtime pay at 1.5x regular rate for hours worked over 40 in a workweek under FLSA.
us-specific
Category
beginner
Difficulty
5 min read
Read time
2025-01-15
Updated
Definition
Short definition
Non-exempt employees are entitled to overtime pay at 1.5x regular rate for hours worked over 40 in a workweek under FLSA.
Detailed explanation
Non-exempt employees are covered by FLSA overtime provisions, meaning they must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek.
Non-exempt employees may be paid hourly or salary, but must track all hours worked. Employers cannot waive overtime even if employees agree, and must pay for all work they suffer or permit.
Common non-exempt roles include administrative assistants, paralegals, many manufacturing jobs, retail workers, and any position not meeting exempt criteria.
Practical guidance
How it works
Track all hours worked. Calculate regular rate (may include bonuses, commissions). Pay overtime at 1.5x for hours over 40.
Best practices
Implement accurate timekeeping
Train on off-the-clock work rules
Approve overtime in advance
Audit time records regularly
Calculate regular rate correctly
Legal context
Legal basis
Fair Labor Standards Act (29 U.S.C. §207)
Jurisdiction: US Federal
Key provisions
Overtime at 1.5x for hours over 40/week
Must pay for all hours worked
Must track time accurately
Cannot waive overtime rights
Must pay at least minimum wage
Recordkeeping requirements
Official source
Frequently asked questions
Can non-exempt employees be salaried?
Yes. Non-exempt employees can be paid salary, but must still track hours and receive overtime for hours over 40. The salary becomes the basis for calculating the regular hourly rate.
Can I average hours across two weeks?
No. Under FLSA, overtime is calculated per workweek. You cannot average hours across two weeks, even with a biweekly pay period. Each week stands alone for overtime calculation.
Related glossary terms
Exempt Employee
Exempt employees are workers who are not entitled to overtime pay under FLSA, meeting both salary and duties tests for specific exemption categories.
FLSA
FLSA is a US federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers.
Overtime Rate
Overtime rate measures the proportion of total hours worked that exceed standard working hours, indicating workload pressure and potential burnout risk.
Time Tracking
Time tracking is the process of recording when employees work, including clock in/out times, breaks, and overtime, for payroll, compliance, and productivity purposes.