Exempt-vs-non-exempt | Meaning and Definition

What is exempt?

Exempt is a type of classification assigned to employees. The employees under the exempt classification will not mandatorily receive the payments for their overtime work legally. The criteria that will decide whether the employees are exempt or non-exempt are the amount of money they are getting, how they are getting that amount, and the type and variety of work the employees do. The exempt term itself says that employees under this condition will be exempted from legally receiving extra money for their overtime work. According to the policy, the organization may or may not pay the employees for their extra work or overtime.

What is non-exempt?

The employees under this category have different facilities compared to exempt employees. The criteria for the non-exempt employees are also the same as that of the exempt employees. The employees under the non-exempt category are the ones who will be receiving the extra amount of money for their overtime work legally. Here the organization has to pay for the overtime work of all the employees in this category. Even guidelines have made some important points for paying non-exempt employees for their extra efforts and overtime work.