Understanding the Difference Between Exempt and Non-Exempt Status

The Fair Labor Standards Act (FLSA) classifies employees into two main categories: Exempt and Non-Exempt, which determine overtime pay eligibility.

Non-Exempt Employees are entitled to overtime pay for any hours worked over 40 in a workweek. Overtime is calculated at 1.5 times the regular pay rate. Non-exempt employees typically have hourly wages and are subject to strict time-tracking requirements.

Exempt Employees, on the other hand, are not eligible for overtime pay, regardless of hours worked beyond 40 in a week. These employees generally hold salaried positions and must meet specific criteria, such as earning a minimum salary and performing certain job duties, often related to executive, administrative, or professional roles.

Understanding your classification is important to know your rights and responsibilities regarding work hours and compensation. If you're unsure about your status, contact HR for clarification.