Nonexempt Employee

Payroll Definitions

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Nonexempt Employee Definiton

Term Definition
Certain provisions of the Fair Labor Standards Act, such as the minimum wage provision or the overtime pay provision, do not apply to certain types of employees. The employees for which a certain provision applies are said to have nonexempt status.

Extended Definition
A nonexempt employee is an employee to which a particular provision of the Fair Labor Standards Act (FLSA) applies. A nonexempt employee is exempt from the FLSA provisions for a minimum wage, overtime pay, or the restrictions on the use of child labor. A worker for whom these provisions still apply is considered to have nonexempt status. The exempt status depends upon the duties the employee performs. If the employee’s duties change, so can their exempt status.

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