Who are non-exempt employees?
Non-exempt employees are employees who are entitled to overtime pay if they work more than 40 hours a week. Overtime pay is calculated at 1.5 times the employee's regular hourly rate for all hours worked over 40.
They are also entitled to minimum wage. Non-exempt employees are typically hourly workers, but can also be salaried workers who earn less than a certain salary threshold.
The Fair Labor Standards Act (FLSA) is a federal law that establishes the minimum wage and overtime pay requirements for non-exempt employees.
Example of pay calculations of a non-exempt employee:
If a non-exempt employee earns $20 per hour and works 50 hours in a week, they would earn the following:
★Regular pay for 40 hours at $20 per hour = $800
★Overtime pay for extra 10 hours is $30($20 per hour x 1.5) = $300
★Total pay = $1100
To be considered non-exempt, an employee must:
★Earn less than $684 per week or $35,568 per year
★Not hold a managerial or supervisory position
★Not have the authority to make independent decisions
Non-exempt employees: Everything you need to know
- Non-exempt employees typically work in blue-collar or hourly positions, such as carpenters, contractors, freelancers, fast food workers, retail associates, construction workers, manufacturing workers, and other positions that involve physical labor.
- Non-exempt employees are not eligible for certain benefits, such as paid time off, health care coverage, or retirement plans, but the FLSA protects them.
- Non-exempt employees are also entitled to a minimum wage and cannot be retaliated against for asserting their rights under the FLSA.
- Non-exempt employees are also less likely to have reliable income, as their pay depends on the availability of work and projects.
- It is important to note that some exceptions exist to the FLSA's overtime rules. For example, certain employees in the transportation and retail industries are exempt from overtime pay.
- Employers are required to comply with the FLSA's overtime rules. Suppose you are a non-exempt employee and believe you are not being paid overtime correctly. In that case, you should contact your employer's human resources department or the US Department of Labor.