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What Is a Non-Exempt Employee?
Let me explain what makes an employee non-exempt: it's based on factors like entitlement to overtime pay, earning less than $684 a week under federal law, and not holding executive, administrative, or professional positions.
As a non-exempt employee, you're someone who earns at least the federal minimum wage and qualifies for overtime pay, calculated at one-and-a-half times your hourly rate for every hour over a standard 40-hour workweek. These rules come from the federal Fair Labor Standards Act (FLSA).
Key Takeaways
Non-exempt status is a federal designation that gives you specific rights as an employee. You're generally an hourly worker who gets paid overtime at 1.5 times your rate. Exempt employees, in contrast, earn at least $684 a week or $35,568 a year and are usually salaried. You might earn less than that, but state thresholds can vary. Your rights as a non-exempt employee are detailed in the FLSA, which was updated starting January 1, 2020.
Understanding Non-Exempt Employees
The term 'non-exempt' applies to you if you earn less than $684 per week. It means you're not exempt from FLSA rules and must get overtime pay. This $684 weekly threshold, equaling $35,568 annually, took effect on January 1, 2020, replacing the old $455.
As a non-exempt employee, you're directly supervised by managers who control your workflow. You can't be in bona fide executive, administrative, professional, or outside sales roles per the FLSA. Teachers, academic admins, and computer workers are typically exempt.
You need to follow orders without making your own management calls. That's why non-exempt roles are common in sectors like construction, manufacturing, maintenance, and other physical or repetitive work. Think assembly line workers—they're classic examples.
Important Advice
If you're unsure about your status, talk to your HR rep. If you think you're misclassified, consider getting legal advice.
Non-Exempt Employee Distinctions and Qualifications
You're typically paid hourly as a non-exempt employee, unlike exempt ones who get fixed salaries. You must get overtime at 1.5 times your wage for hours over 40, but exempt employees don't get that, even for much longer weeks.
Under the FLSA, you could be non-exempt if you earn under $684 weekly or have little self-supervision. For instance, a maintenance worker at $18 an hour for 40 hours earns $720 weekly, which beats the threshold for exemption. But if they're closely supervised with no independent judgment, they're non-exempt. For 50 hours, they'd get $18 for 40 and $27 for the extra 10.
You must earn at least the federal minimum of $7.25 hourly as non-exempt, but higher state or local rates apply if they're greater.
Fair Labor Standards Act Overview
The FLSA set up the Wage and Hour Division in 1938 to handle labor laws for most private and government workers. The Supreme Court upheld it in 1941 despite challenges. Amendments have raised the minimum wage from $0.75 to $7.25, and it covers overtime, hours, recordkeeping, and child labor.
Note that the FLSA's last update was in September 2019, effective January 1, 2020.
Advantages and Disadvantages of Non-Exempt Status
Whether non-exempt is better depends on your work-life balance priorities. The main plus is extra pay for long hours, though it might be less overall than salaried exempt roles. Exempt workers can sometimes leave early and still get full pay, but you get more FLSA protections.
Exempt employees get their full salary even in crises requiring remote work. But if your job needs physical presence and you can't work, you don't get paid as non-exempt. You have to track hours—for example, a retail worker folding clothes won't get paid if the store's closed for remodeling.
Meanwhile, an exempt store manager might still get paid for remote management. Exempt roles often come with benefits like PTO, health coverage, and retirement plans. But both types qualify for government benefits like Social Security and unemployment.
Pros and Cons
- Pros: You get overtime at 1.5 times pay; easier to find entry-level jobs; more FLSA protections; same government benefits as exempt.
- Cons: Often lower pay since less experience needed; fewer advancement chances; no pay if physical presence required but impossible.
Examples of Non-Exempt Jobs
Before taking a job, check if it's exempt or non-exempt—it varies by role and company. It's often easier to spot exempt positions. Executives manage departments, supervise two full-timers, and handle personnel. Admins do office work on operations. Professionals need advanced knowledge and meet pay thresholds. Computer roles like programmers or engineers qualify if they meet income and duties.
If you don't fit those, you're non-exempt.
Common Questions
What's the difference between exempt and non-exempt? Non-exempt get overtime; exempt don't. Is one better? It depends on job type, background, and situation—exempt often pay more with benefits but no overtime. Can you be salaried and non-exempt? Yes, if you get overtime over 40 hours and meet minimum wage.
The Bottom Line
The FLSA sets statuses like non-exempt, meaning you're entitled to overtime beyond 40 hours. You can be paid salary, hourly, or otherwise, as long as it meets requirements.
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