Definition
An employee who is covered by the Fair Labor Standards Act's minimum wage and overtime provisions and must be paid at least the applicable minimum wage for all hours worked and overtime at 1.5 times their regular rate for hours exceeding 40 in a workweek.
UK Context
Best Practices
- Implement reliable time-tracking systems and train non-exempt employees on proper clock-in and clock-out procedures
- Prohibit off-the-clock work through clear policies and manager training
- Calculate the regular rate of pay correctly by including non-discretionary bonuses, commissions, and shift differentials
- Audit meal break practices to ensure automatic deductions are not applied when employees work through breaks
Frequently Asked Questions
Can a salaried employee be non-exempt?
Yes. Payment method does not determine exempt status. A salaried employee who does not meet the salary threshold or duties test for an FLSA exemption is non-exempt and must be paid overtime for hours over 40 in a workweek, with their salary converted to an hourly rate for overtime calculation.
What counts as hours worked for non-exempt employees?
Hours worked include all time an employee is required to be on the employer's premises, on duty, or at a prescribed workplace. This includes short rest breaks, required training, travel between worksites during the day, and waiting time when the employee cannot use the time freely.
What is the overtime rate for non-exempt employees?
Federal law requires overtime at 1.5 times the employee's regular rate of pay for hours exceeding 40 in a workweek. Some states like California also require daily overtime after 8 hours and double time after 12 hours in a workday.