What Does Salaried Non-Exempt Mean?

The Fair Labor Standards Act (FLSA) states that all employers must classify the roles in their business as one of two things: exempt or nonexempt. Only nonexempt employees are covered under the regulations set forth by the FLSA.

Under the FLSA, nonexempt workers earn at least the minimum wage and are also entitled to overtime pay (which is one and half times their hourly rate). This overtime has to be paid for every single hour that the employee works over the standard 40-hour workweek.

While minimum wage commonly applies to hourly employees, the FSLA has a set minimum weekly threshold for salaried nonexempt positions as well.

What’s the Difference Between Salaried Non-Exempt and Hourly?

Understanding the difference between salaried non-exempt and hourly is a lot simpler than you might think and comes down to the way these positions are remunerated.

As you might suspect, an hourly employee has a set hourly wage and is paid for all of the hours that they work in any given workweek.

Salaried non-exempt workers, however, are paid a predetermined amount per year, which is usually paid on a bi-weekly or monthly basis.

Their salary is therefore not directly tied to how many hours they work, although their pay is determined based on the approximate number of hours they’re expected to work. It’s very common for nonexempt salaried workers to work a longer or shorter workweek depending on their workload.


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