Glossary > Non-exempt employee

GLOSSARY

Non-exempt employee

Updated: September 11, 2025

What is the definition of a non-exempt employee?

A non-exempt employee is eligible for minimum wage and overtime pay when they work more than 40 hours per week. While most non-exempt employees are paid hourly, some receive a salary. As an employer, it’s your responsibility to understand and enforce the Fair Labor Standards Act (FLSA) requirements for non-exempt employees.

Who is a non-exempt employee?

In most cases, non-exempt employees perform technical or manual duties and get paid hourly.  Some common examples of non-exempt workers include electricians, cashiers, mechanics, food servers, and construction workers. Non-exempt employees are “not exempt” from overtime regulations, meaning they qualify for overtime pay any time they work more than 40 hours per week. In addition, food service, retail, hospitality, and trade workers like electricians and carpenters are usually considered non-exempt employees.

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Can an employee be both exempt and non-exempt?

No, an employee cannot be classified as both exempt and non-exempt. The FLSA requires you to choose one. However, you may be able to re-classify a worker from exempt to non-exempt or vice versa.  In fact, this is a fairly common practice as most employers and employees find that their needs change and positions evolve over time.

Is a salaried employee exempt or non-exempt?

Most salaried employees are exempt, but this isn’t always the case. As an employer, you may be able to pay a non-exempt employee a salary, as long as you pay them at least minimum wage for the hours they work plus overtime pay any time they work more than 40 hours in a workweek.

Why do companies have non-exempt employees?

Most companies employ non-exempt workers like retail associates, electricians, and construction workers to help carry out the tasks given by managers and supervisors. Non-exempt employees typically receive an hourly wage and focus on more technical or manual duties rather than management or strategic functions. They can add or switch shifts with others, providing more flexibility for companies.

Using non-exempt employee in a sentence

“When Sarah started as our office manager, I had to remind her that our receptionist and warehouse staff are non-exempt employees, so we need to track their hours carefully and pay overtime whenever they work more than 40 hours in a week.”

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