FLSA Non-Exempt
A worker classification under the Fair Labor Standards Act for employees who must be paid at least minimum wage and overtime for all hours worked beyond 40 in a workweek.
What Does FLSA Non-Exempt Mean?
Non-exempt employees are covered by the Fair Labor Standards Act's overtime and minimum wage protections. They must receive at least the federal minimum wage of $7.25 per hour (or higher state or local minimum, whichever applies) and overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a single workweek. Most hourly workers and many salaried workers are non-exempt.
Recordkeeping Requirements
- Total hours worked each workday and workweek - Regular hourly rate of pay - Total daily or weekly straight-time earnings - Total overtime earnings for the workweek - All additions to or deductions from wages - Total wages paid each pay period and date of payment
Common Compliance Issues
Off-the-clock work (responding to emails, attending mandatory training, preparing equipment), automatic meal break deductions when employees actually work, and misclassification of non-exempt employees as exempt or independent contractors are leading sources of FLSA litigation. State wage and hour laws often provide greater protections than federal law, including daily overtime (California after 8 hours per day), meal and rest break requirements, and waiting time penalties for late final paychecks. Collective and class actions for unpaid overtime are common and can result in substantial damages.