Glossary Entry • Letter E
Exempt vs. Non-Exempt Employee
The classification of employees determining whether they are entitled to overtime pay under the Fair Labor Standards Act.
Detailed Explanation & Employer Guidance
Non-exempt employees must be paid minimum wage and overtime (time-and-a-half for hours worked beyond 40 per week). Exempt employees are excluded from minimum wage and overtime regulations, typically because they meet specific salary threshold requirements and perform executive, administrative, or professional duties.
Automate Compliance with Paylocity
Never worry about manual misclassifications or regulatory calculation errors. Paylocity keeps your workforce policies and payroll engine up to date with changing state and federal laws.
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