Nonexempt employee is a categorization under the Fair Labor Standards Act (FLSA). A nonexempt employee is usually what would be considered a blue-collar worker. Due to the nature of how nonexempt employee positions are structured, they tend to be repetitive and have a measurable goal. They’re also typically not as well paid as exempt positions.
Another major aspect is that, unlike exempt workers, nonexempt workers are required to be paid overtime if they work more than 40 hours per week. They also must be paid at least minimum wage. Due to that structure, their pay is almost always hourly rather than salaried.
Key Takeaways:
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Most nonexempt employees work what would be considered a blue-collar job.
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They are entitled to overtime pay if they work more than 40 hours per week and aren’t in managerial positions.
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They usually aren’t paid as highly as exempt positions.
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These positions are generally quite structured and aimed at a quota or other measurable goal.
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As a rule, nonexempt positions require less education, therefore making them less socially prestigious.
Who Qualifies as a Nonexempt Employee?
A nonexempt employee is defined under the FLSA’s guidelines. This had to do with maintaining fair labor standards and making sure that employees are properly compensated. If you’re unsure if you’re a nonexempt employee or are interested in whether the jobs you’re looking at would be nonexempt or exempt, you should ask your HR department.
If you want to get an idea of whether or not your job would be nonexempt and what that would look like, here are the basics.
Under the guidelines, nonexempt employees:
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Must be paid at least minimum wage.
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Are entitled to overtime pay of one and half times their usual rate.
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Are typically hourly, though this isn’t a requirement.
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Must be supervised by those in upper-level positions who are in charge of managing the workflow.
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There are also some types of positions that are automatically exempt:
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Executives
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Administrative personnel
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Sales staff
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Teachers
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Computer workers
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Advantages of Being a Nonexempt Employee
There are some definite advantages to being a nonexempt employee rather than an exempt employee. The exact details will depend on what sort of work you do; however, there are some common aspects of nonexempt employees that are positive.
Nonexempt Employees:
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Are entitled to extra compensation for overtime. Exempt employees are expected to get their work and how many hours it takes doesn’t affect their pay. Nonexempt employees, on the other hand, get paid at least a time and a half when they exceed 40 hours in a week.
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Have stronger labor law projections. Many unions and other labor movements were in what are now nonexempt positions. That means that there are a lot of direct labor laws pointing to these types of jobs, resulting in stronger protections for the worker.
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Have a lower entry barrier. As a rule, nonexempt positions are less skilled than exempt positions. At the very least, they require less education. This means that it’s easier to get one of these positions and build up experience working.
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Qualify for government benefits. This isn’t to say that exempt employees don’t, but just because you work as a nonexempt employee doesn’t preclude you from government benefits, such as social security and unemployment.
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Aren’t expected to work outside of work hours. Salaried employees’ jobs have a tendency to creep into their private time, but due to the nature of most nonexempt jobs, it isn’t possible to work when not at work, which makes it easier to separate your private life from your work life.
Disadvantages of Being a Nonexempt Employee
As with most things, there are also definite negative aspects of being a nonexempt employee as opposed to an exempt employee. This will again depend on your specific job, but there are some negative aspects that the majority of nonexempt jobs share.
Nonexempt employees:
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Don’t have as many advancement opportunities. It’s difficult to move up the ladder while being a nonexempt employee. Some can manage to break into exempt positions, but as a rule, there’s an advancement ceiling most workers of this type will hit.
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Are usually lower paid. With the lower barrier to entry comes smaller paychecks. As most nonexempt positions aren’t managerial or based on intellectual prowess, they’re often labeled unskilled and therefore get less compensation.
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Don’t get paid if they don’t show up. This is only for jobs that require your physical presence, such as retail, factory work, and construction. However, if you’re sick, have a family emergency, or the store you work at is closed, you aren’t entitled to pay.
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Have very limited flexibility. Due to the fact that the majority of these jobs require your physical presence, it very much limits your flexibility during work hours. If you aren’t present, you aren’t paid, and you aren’t able to get any work done.
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Get fewer work benefits. As a rule, nonexempt positions have worse health insurance, sick leave, and retirement benefits than exempt employees.
Nonexempt vs. Exempt
The main differences between the two are how pay and work hours are structured. Nonexempt employees are required to be paid overtime, while exempt employees aren’t. Most nonexempt employees are physically required to be at work to get paid, while exempt employees are paid the same every week, no matter how much they work.
In short, exempt employees have a lot more flexibility in their jobs and working hours than nonexempt employees. As a rule, exempt positions are also more cerebral and managerial, while nonexempt positions are structured and goal-oriented.
Nonexempt Employee FAQ
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Can an employee be salaried and nonexempt?
Yes, it’s possible to be both a nonexempt employee and salaried. It’s often stated as “salaried, nonexempt.” This means that while you are salaried, you’re still entitled to overtime if you work more than 40 hours per week.
These positions can have different pay structures besides being based on hours worked, just as long as it meets the minimum wage requirements.
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What are examples of nonexempt positions?
Some examples of nonexempt positions are factory workers, construction workers, and retail employees. There are many other nonexempt positions as well, such as maintenance workers and other physical labor, such as roofing.
Not all of these positions are strictly nonexempt employees, of course. For instance, many store managers in retail are salaried, and the general manager is often exempt.
Author
Di Doherty
Di has been a writer for more than half her life. Most of her writing so far has been fiction, and she’s gotten short stories published in online magazines Kzine and Silver Blade, as well as a flash fiction piece in the Bookends review. Di graduated from Mary Baldwin College (now University) with a degree in Psychology and Sociology.
