Federal

Salary non exempt definition

January 6, 2026federal-laws

Salary Non Exempt Definition (FLSA): What HR and Employers Need to Know

If you’re searching for a salary non exempt definition, you’re likely trying to answer a practical compliance question: Can an employee be paid a salary and still be entitled to overtime? Under the Fair Labor Standards Act (FLSA), the answer is yes. “Non-exempt” describes overtime eligibility—not how you pay the employee. A non exempt employee may be paid hourly or on a salary basis, but if they’re non-exempt, they generally must receive overtime pay when they work more than 40 hours in a workweek.

This SwiftSDS guide explains FLSA status meaning, how to define FLSA status, and the difference between FLSA exempt or nonexempt classifications so you can reduce misclassification risk and meet federal labor law requirements.

Salary non exempt definition: the core concept

A salary non exempt employee is someone who:

  • Is paid on a salary basis (a fixed amount per week or pay period), and
  • Is non-exempt under the FLSA, meaning they are eligible for overtime and other wage-and-hour protections.

In other words, FLSA non exempt meaning is about rights under the law—primarily overtime pay and minimum wage protections—regardless of whether you use hourly pay or a salary.

Why this matters for compliance

Misunderstanding this point is a common compliance error. Employers sometimes assume “salary” automatically equals “exempt.” It doesn’t. Exemption depends on meeting specific FLSA tests (discussed below), not on the paycheck format.

For a broader overview of federal requirements, see SwiftSDS’s hub article on the Fair labour standards act.

FLSA status meaning: exempt vs. non-exempt

When HR teams ask “define FLSA status”, they’re typically referring to how the employee is classified under the FLSA:

  • Non-exempt (FLSA status non exempt): Generally must be paid at least minimum wage and receive overtime pay at 1.5× the regular rate for hours worked over 40 in a workweek.
  • Exempt: Not entitled to overtime under the FLSA if the employee meets the legal requirements for an exemption.

The FLSA is administered by the U.S. Department of Labor (DOL), Wage and Hour Division, and the primary wage-and-hour rules are found in 29 U.S.C. § 201 et seq. and implementing regulations at 29 C.F.R. Part 541 (exemptions) and related parts for overtime rules.

What does FLSA exempt mean? The tests that create an exemption

To understand what does FLSA exempt mean, focus on the main exemption framework. Most “white-collar” exemptions require (at a high level):

  1. Salary basis test (paid a predetermined salary not subject to improper reductions)
  2. Salary level test (must meet a minimum salary threshold set by federal rules)
  3. Duties test (job duties must meet the criteria for an executive, administrative, professional, outside sales, or certain computer roles)

If any required element is not met, the employee is typically non-exempt—even if they receive a salary. That’s why “FLSA exempt salary” is not just about paying a salary; it’s about paying a compliant salary and meeting duties requirements.

Actionable takeaway: When deciding FLSA exempt or nonexempt, document the exemption analysis (duties + pay basis/level) in the job file, and update it when job duties change.

How overtime works for a salaried non-exempt employee

A salaried non-exempt employee is still overtime-eligible. That requires employers to calculate the regular rate of pay so overtime can be paid correctly.

Step-by-step (practical approach)

  1. Identify the workweek (a fixed, recurring 7-day period).
  2. Determine weekly compensation (salary plus most nondiscretionary bonuses/commissions may need inclusion in the regular rate).
  3. Compute the regular rate by dividing pay by total hours worked (subject to FLSA rules).
  4. Pay overtime premium for hours over 40 in the workweek (typically 0.5× additional if the salary already covers straight time for all hours, or 1.5× depending on the pay plan).

Because overtime calculations can vary based on the pay plan (and some methods like “fluctuating workweek” have strict requirements), many employers adopt a clear policy: salary covers up to 40 hours, and overtime is paid at 1.5× the regular rate beyond that.

For related federal wage concepts, SwiftSDS also explains the Hourly compensation requirement and how minimum pay expectations can intersect with classification decisions.

Common misclassification risks (and how to avoid them)

Misclassification typically happens when job titles or salary arrangements are treated as “exempt” without applying the tests.

Risk #1: Relying on title instead of duties

“Manager,” “coordinator,” or “administrator” doesn’t automatically satisfy an exemption. The duties test is what matters under 29 C.F.R. Part 541.

Action: Audit job descriptions annually and compare actual duties performed to exemption criteria.

Risk #2: Treating salary as a substitute for overtime

Paying a salary to a non-exempt employee does not remove overtime obligations.

Action: Train payroll and managers on the salary non exempt definition so overtime approvals and timekeeping align with FLSA rules.

Risk #3: Poor timekeeping for salaried non-exempt staff

Non-exempt employees must track hours worked so overtime can be paid accurately.

Action: Require daily time entry and supervisor review; define “hours worked” rules (remote work, after-hours email, travel time) in policy.

Compliance requirements: postings and notices (federal and beyond)

FLSA compliance is not only about pay practices; it also includes required workplace notices. Most covered employers must display the DOL’s FLSA poster.

For an at-a-glance checklist of posting obligations, review Federal (United States) Posting Requirements.

Location-specific rules can be stricter than federal

States (and sometimes counties/cities) may impose different wage-and-hour rules or additional posting requirements.

And if you have employees in Massachusetts, note that additional wage-and-hour postings may apply, such as Massachusetts Wage & Hour Laws.

Practical checklist: how to determine exempt vs. non-exempt

Use this workflow to decide FLSA exempt or nonexempt accurately:

  1. Confirm coverage (most employers engaged in interstate commerce or meeting enterprise thresholds are covered).
  2. Identify the role’s primary duty (what the job actually does most of the time).
  3. Apply exemption tests (salary basis + salary level + duties, when required).
  4. If non-exempt: implement timekeeping, overtime approval rules, and accurate regular-rate calculations.
  5. Maintain records (FLSA recordkeeping requirements generally include hours worked, wages paid, additions/deductions, etc.).
  6. Post required notices and verify state/local posting rules.

For HR teams building a broader compliance program, SwiftSDS also covers foundational worker protections in 5 rights of workers and related federal requirements tied to equal opportunity (see as it pertains to employment opportunity the eeo strives to).

FAQ: Salary non-exempt and FLSA classification

Can a non exempt employee be paid a salary?

Yes. A non exempt employee can be salaried, but they remain entitled to overtime pay under the FLSA for hours over 40 in a workweek.

What does FLSA exempt mean in plain English?

It means the employee meets specific legal tests (often salary basis/level plus duties) that remove the requirement to pay overtime under federal law. If those tests aren’t met, the employee is typically non-exempt.

If someone is salaried non-exempt, do they have to track time?

Yes. Because overtime eligibility depends on hours worked, salaried non-exempt employees should record all hours worked so overtime is calculated and paid correctly.

SwiftSDS helps employers stay compliant with federal and state labor law requirements, including posting and notice obligations that support accurate FLSA classification and wage-and-hour practices.