FLSA Exempt and Nonexempt Defined - Office of Human Resources 2025

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As a side note, non-exempt is not necessarily better than exempt, or vice versa. Its just a matter of incentives. Non-exempt incentivizes you to work more hours to get overtime pay, if youre into that. Exempt incentivizes you to work as efficiently as possible, because you dont get overtime.
The main difference between exempt and nonexempt employees in the U.S. has to do with how theyre paid and whether theyre eligible for overtime pay. There are also tax implications and misclassification penalties to consider when complying with federal and state wage and hour laws.
With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties.
Nonexempt: An individual who is not exempt from the overtime provisions of the FLSA and is therefore entitled to overtime pay for all hours worked beyond 40 in a workweek (as well as any state overtime provisions). Nonexempt employees may be paid on a salary, hourly or other basis.
Non-exempt is a term referring to employees who earn less than $684 per week. Non-exempt means that the employee is not exempt from the FLSA and must be paid overtime. The $684 weekly wage, resulting in an annual threshold of $35,568, was put into effect on Jan. 1, 2020. It replaced the old weekly wage of $455.
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People also ask

HR Generalists are typically classified as exempt employees under the Fair Labor Standards Act (FLSA), which means they are not eligible for overtime pay. However, specific job duties and salary levels can impact this classification, so its always good to double-check.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

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