HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Non-Exempt Employee

What is a Non-Exempt Employee?

A non-exempt employee qualifies for overtime pay and the federal minimum wage. Overtime is calculated as one-and-a-half times their hourly rate, beyond a standard 40-hour work week.

The Fair Labor Standards Act (FLSA) protects non-exempt employees. The FSLA requires employers by law to to pay non-exempt employees overtime for every hour worked over 40 hours. These laws assure fair workplace standards for all employees. They also require employers to post overtime and minimum wage standards in high-traffic, visible areas in the workplace. Furthermore, these posters should be accessible to all employees and prospective employees.

Currently the overtime income threshold stands at $35,568/year or $684/week. Therefore, this means that those earning less than $35,568/year or $684/week automatically qualify for overtime. On a federal level, there is no maximum limit to overtime unless an individual is younger than 16 years old.

Related Terms: Exempt Employee, FLSA, Minimum Wage, Overtime Pay

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