What is the difference between exempt and non-exempt employees?

Exempt and non-exempt employees are two classification categories used in the workforce that have significant differences in responsibilities, pay structures, and overtime eligibility.

Exempt Employees

Exempt employees are typically classified as professionals, executives, or administrative employees who are exempt from certain provisions of the Fair Labor Standards Act (FLSA). They are not eligible for overtime pay and are often paid a salary rather than an hourly wage. Exempt employees are expected to fulfill their job responsibilities regardless of the number of hours worked, taking on more managerial or specialized tasks.

Exempt Employee Responsibilities:

• Higher-level job responsibilities
• Management duties
• Advanced knowledge in specialized fields

Exempt Employee Pay:

Exempt employees are typically paid a fixed salary regardless of the number of hours worked in a week.

Exempt Employee Overtime Eligibility:

Exempt employees are not eligible for overtime pay as they are expected to complete their job duties regardless of the time it takes.

Non-Exempt Employees

Non-exempt employees are typically classified as hourly workers who are entitled to minimum wage and overtime pay as per the FLSA guidelines. They are paid based on the number of hours worked and are eligible for overtime pay for any hours worked beyond 40 hours in a workweek.

Non-Exempt Employee Responsibilities:

• Entry to mid-level job responsibilities
• Hourly tasks
• Less specialized roles

Non-Exempt Employee Pay:

Non-exempt employees are paid on an hourly basis and receive overtime pay for any hours worked beyond 40 hours in a workweek.

Non-Exempt Employee Overtime Eligibility:

Non-exempt employees are eligible for overtime pay as per FLSA regulations for any hours worked beyond the 40-hour workweek threshold.