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Workers Comp Exemption

Are You a Non Exempt Employee? Key Signs to Know

Picture this: You’ve been working late for weeks, putting in 50-hour weeks to meet project deadlines, yet your paycheck looks exactly the same as it did when you worked 40 hours. Sound familiar? If so, you might be unknowingly missing out on significant overtime compensation—and your employer could be violating federal law.

Understanding whether you’re classified as a non exempt employee isn’t just administrative trivia—it’s the key to ensuring you receive every dollar you’ve earned. With wage theft costing American workers an estimated $15 billion annually, knowing your classification status could mean the difference between fair compensation and leaving thousands of dollars on the table.

This guide explains the key signs that indicate non-exempt status, the wage and hour laws that protect you, and how to verify your classification with confidence.

What Is a Non Exempt Employee Under FLSA Rules?

The Fair Labor Standards Act (FLSA) defines a non exempt employee as an overtime-eligible worker entitled to minimum wage and overtime pay for hours worked beyond 40 in a workweek.

The Three-Part Test for Exemption

  • Salary Basis Test: Paid a fixed salary
  • Salary Level Test: Meets the minimum weekly salary threshold
  • Duties Test: Performs exempt executive, administrative, or professional duties

Failing any one of these usually means non-exempt status.

Key Signs You’re a Non Exempt Employee

1. You’re Paid by the Hour

Hourly pay almost always indicates non-exempt classification.

2. You Track Your Time

Time clocks, timesheets, and digital tracking systems are used primarily for non-exempt workers.

3. You Receive Overtime Pay

Any history of overtime pay confirms overtime eligibility.

4. Your Work Is Hands-On

  • Construction and trades
  • Manufacturing and warehouse roles
  • Retail and food service
  • Administrative and support positions

5. You Earn Below the Salary Threshold

Salary alone does not remove overtime rights if earnings are below required limits.

Your Rights as a Non Exempt Employee

  • Overtime pay at 1.5× your regular rate
  • Pay for all hours worked, even if not approved
  • Accurate time tracking and recordkeeping
  • Protection against wage theft and misclassification

How to Verify Your Status

  • Review your offer letter and employee handbook
  • Compare your actual job duties to FLSA rules
  • Confirm your salary meets federal and state thresholds
  • Ask HR or payroll for clarification

Conclusion

If you’re working long hours without overtime pay, there’s a strong chance you’re a non exempt employee. Understanding your classification helps protect your income, your time, and your legal rights.

Get Clarity on Wage Classification

Unsure if you’re properly classified or paid? Take the next step and get clarity now.


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