Non-Exempt Employees
These employees are entitled to minimum wage as well as overtime pay under the FLSA. Employers are required to pay these workers an overtime rate of 1.5 times their standard rate when they work more than 40 hours per workweek.
Example: If you work 45 hours at $20/hr:
40 hours × $20 = $800
5 overtime hours × $30 = $150
Total Pay: $950
Exempt Employees
These employees are not protected by the FLSA and are not entitled to overtime pay. For most professions, if an employee meets the following three rules, the employee is exempt:
- The employee is paid at least $35,568 per year ($684 per week).
- The employee is paid on a salary rather than an hourly basis.
- The employee performs exempt job duties (e.g. executive, administrative, or professional roles).