Non Exempt Status Employee Law and Legal Definition

A nonexempt status employee is protected by the wage and hour laws of your state, or of the federal government under the Fair Labor Standards Act (FLSA). Wage and hour laws require employers to pay at least a certain minimum hourly wage rate and a premium rate for "overtime" work. Exempt employees under federal law are "executives," "professionals" and full-time students, as defined under the Fair Labor Standards Act, and are generally paid on a salaried basis.

Non-exempt employees are paid on an hourly, rather than a salary basis. However, an employee may be classified as non-exempt despite receiving a slary if the job doesn't involve the exercise of discretion and independent judgment. It is the nature of the work performed that determines exemption, not "salary" or job title (although one of the criteria for determining whether or not one is exempt is that to be exempt, the employee must be paid on a "salary basis").