What is the Difference Between Exempt and Non-Exempt?

The difference between exempt and non-exempt employees lies in their classification under wage and hour laws, which determines their rights to overtime pay, minimum wage, and meal and rest breaks. Here are the key differences between exempt and non-exempt employees:

Exempt Employees:

• Not protected by wage and hour laws.
• Paid a regular salary, not an hourly wage.
• Not eligible for overtime pay, minimum wage, or meal and rest breaks.
• Generally hold administrative, executive, or professional positions.
• May be paid at least a certain amount (e.g., $684 per week or $35,568 per year).

Non-Exempt Employees:

• Protected by wage and hour laws.
• Paid an hourly wage or earn a salary less than a minimum threshold.
• Entitled to overtime pay, minimum wage, and meal and rest breaks.
• Typically focused on more routine work.

The actual job duties of an employee, not their job title or salary status, determine whether they are exempt or non-exempt. Employers must classify their employees correctly to avoid legal consequences, such as fines or penalties.

Comparative Table: Exempt vs Non-Exempt

The main differences between exempt and non-exempt employees lies in their primary duties, how they are paid, and their eligibility for overtime pay. Here is a comparison table summarizing the differences:

Exempt employees are typically paid a regular salary and do not qualify for minimum wage or overtime pay. They often require advanced knowledge or special skills to perform their primary duties. On the other hand, non-exempt employees are paid at least minimum wage for all hours worked and are entitled to overtime pay for hours worked over 40 per week. They usually focus on more routine work.