nonexempt employee
A non-exempt employee is a worker who is covered by the overtime and minimum wage protections of the Fair Labor Standards Act (FLSA). Nonexempt employees must be paid at least the federal or applicable state minimum wage for all hours worked, and they must receive overtime pay at one and one-half times their regular rate for all hours worked over 40 hours in a workweek.
Employees are generally classified as nonexempt unless they meet the requirements for an FLSA exemption. To qualify as exempt, an employee must (1) perform certain executive, administrative, or professional duties, and (2) be paid on a salary basis at or above the minimum salary threshold set by the Department of Labor.
Common examples of nonexempt employees include hourly workers in retail, hospitality, food service, manufacturing, and clerical support. In contrast, exempt employees are not entitled to overtime pay and are paid a salary regardless of hours worked, provided they meet the statutory duties and salary requirements.
[Last reviewed in November of 2025 by the Wex Definitions Team]
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