Exempt vs Non-Exempt Employee
Under the US Fair Labor Standards Act (FLSA), non-exempt employees are entitled to minimum wage and overtime pay, while exempt employees are not. Whether someone is exempt depends on their duties and, for many categories, a minimum salary - not just a job title.
The difference
- Non-exempt: usually hourly, must be paid overtime beyond 40 hours a week.
- Exempt: usually salaried professionals, executives, or administrators who meet specific duties and salary tests.
- Calling someone a "manager" does not make them exempt; the legal test does.
Why it matters
Misclassification is a common and costly compliance mistake. Accurate hour records are essential for non-exempt staff and useful evidence for everyone.
How Sandtime.io fits
Sandtime.io keeps an accurate, reviewable record of hours for the people who need it, without screenshots or monitoring.
Related Terms
The exempt/non-exempt line decides who earns overtime and double time, and it makes accurate time tracking matter most for hourly staff.