Exempt / non-exempt

Most non-exempt employees are entitled to at least the federal minimum wage for all hours worked and overtime at time and a half after 40 hours in a workweek. To be exempt, an employee generally must meet the salary-basis, salary-level, and duties tests set by Department of Labor regulations. Job title alone does not decide the answer.

Key takeaways

• FLSA classification: Exempt and non-exempt are US Fair Labor Standards Act labels that govern minimum wage and overtime eligibility.
• Non-exempt protections: Non-exempt workers must receive at least the federal minimum wage and overtime at 1.5× after 40 hours in a workweek.
• Three-part exempt test: To qualify as exempt, an employee must meet salary-basis, salary-level, and duties tests — not just hold a managerial title.
• Title is not enough: Calling someone “manager” or “supervisor” does not make them exempt if they fail the salary or duties tests.

Common questions

What does exempt vs non-exempt mean?

Exempt and non-exempt are US Fair Labor Standards Act labels that determine whether a worker must receive federal minimum wage and overtime protections. Non-exempt employees get overtime after 40 hours; exempt employees do not, provided they meet all three exemption tests.

Who qualifies as exempt under the FLSA?

An employee must meet the salary-basis test (paid a fixed salary), the salary-level test (earning at or above the DOL threshold), and the duties test (performing executive, administrative, or professional duties). Job title alone does not decide the answer.