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A nonexempt employee is a worker protected by the Fair Labor Standards Act. This means the nonexempt employee is legally entitled to minimum wage plus time-and-a-half overtime pay whenever they work over 40 hours in a workweek.
Nonexempt status is the default under the Fair Labor Standards Act. Workers are only exempt if they meet specific salary and duties tests for executive, administrative, professional, outside sales, or computer roles. Job titles or paying a salary alone do not make an employee exempt.
Employers must track hours worked for nonexempt staff to calculate overtime, which includes bonuses and commissions in the regular rate. Minimum wage rules apply, with exceptions like the youth minimum wage. Stricter state rules always override federal law.
A common classification mistake is assuming salaried employees cannot earn overtime. Salaried nonexempt employees still earn overtime based on an hourly equivalent, and nondiscretionary bonuses must be factored into overtime pay.
No. Exemption depends on specific duties and salary thresholds. Salaried nonexempt workers must still receive overtime.
They increase the regular rate of pay, requiring overtime recalculation for the affected weeks.
Employers must follow whichever law is more favorable to the employee.