Small Business Glossary and Definitions

Non-exempt employees are employees that must be paid the minimum wage and overtime when they work more than 40 hours in a given work week. Sometimes, employees met certain criteria where these standards do not have to be followed. However, the majority of the time that criteria is not met and employees are considered non-exempt. When you are dealing with non-exempt employees, it’s vital to have an understanding of the Fair Labor Standards Act in order to make sure that all standards are being met.