Income & Work

What Is a Non-Exempt Employee?

A non-exempt employee, under the US Fair Labor Standards Act, is entitled to at least the federal minimum wage and to overtime pay of at least 1.5 times the regular rate for hours worked over 40 in a workweek. Most hourly workers are non-exempt, and some salaried workers are too.

Tracking Hours

Employers must keep records of hours worked by non-exempt employees, which is why timesheets are common for these roles.

Example

A non-exempt employee earning 22 an hour who works 46 hours in one workweek is paid 40 × 22 = 880 for regular hours plus 6 × 33 = 198 for overtime, for a total of 1,078.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.