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Salaried Non-Exempt
Compensation

Salaried Non-Exempt

Definition

What is Salaried Non-Exempt?

A Salaried Non-Exempt employee is paid a fixed salary but does not meet the criteria for overtime exemption, meaning they are still legally entitled to overtime pay for hours worked beyond 40 per week.

Featured snippet
A salaried worker who still qualifies for overtime pay under labor law.
In Practice

How Salaried Non-Exempt works?

A salaried non-exempt employee receives a fixed weekly or annual salary but is not exempt from the FLSA overtime requirements — meaning they must receive overtime pay (at 1.5x their regular rate) for all hours worked above 40 in a workweek. The regular rate for a salaried non-exempt employee is calculated by dividing the weekly salary by the hours the salary is intended to compensate — with the hours basis being a critical compliance variable. Salaried non-exempt status is most common in clerical, technical, and supervisory roles where salaried pay is preferred for administrative simplicity and employee perception but where the employee's job duties do not meet the FLSA exemption criteria required to legitimately classify them as exempt from overtime.

By the numbers

Key Statistics

What the research says about employee engagement.

15%
The IRS and DOL estimate that approximately 15 percent of salaried employees in the United States are salaried non-exempt — a classification that employers frequently overlook, instead applying exempt status to all salaried employees regardless of whether the duties test is satisfied.
3 years
Salaried non-exempt employee overtime liability for organizations that fail to track and pay overtime to all non-exempt employees regardless of pay structure can accumulate for up to 3 years — the FLSA statute of limitations — with liquidated damages equal to the back-pay amount doubling the financial exposure for willful violations.
Time-tracking requirements for salaried non-exempt employees are often informally relaxed because the employer and employee both perceive salaried status as incompatible with hourly timekeeping — an operationally convenient but legally incorrect assumption that creates untracked overtime liability.
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Also known as

Synonyms and Translations

Other ways this term appears across industries and languages.

Synonyms
Non-Exempt Salaried Employee
Overtime Eligible Salaried
Non-Exempt Worker
Translations
🇸🇦
Arabic
موظف براتب ثابت غير معفى
🇫🇷
French
Salarié non exempté
🇮🇳
Hindi
वेतनभोगी गैर-छूट कर्मचारी
🇵🇰
Urdu
غیر مستثنیٰ تنخواہ دار ملازم
🇵🇭
Tagalog
Salaried Non-Exempt
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People may ask

People May Ask

Common questions about employee engagement.

What is a salaried non-exempt employee?
A salaried non-exempt employee earns a fixed salary but is still entitled to overtime pay under the FLSA when they work more than 40 hours in a workweek.
How is overtime calculated for salaried non-exempt employees?
Their regular rate is calculated by dividing weekly salary by hours worked, with overtime paid at 1.5 times that rate for all hours above 40 per week.
What makes an employee non-exempt even on salary?
If they do not meet FLSA duty tests for executive, administrative, or professional exemption, or earn below the minimum salary threshold, they remain non-exempt.
What is the difference between salaried exempt and salaried non-exempt?
Exempt employees have no overtime entitlement. Non-exempt employees, even on salary, must receive overtime compensation for eligible extra hours worked.
How should employers track hours for salaried non-exempt employees?
Through timekeeping systems that accurately record all hours worked, ensuring overtime is identified and compensated correctly to maintain FLSA compliance.