Exempt vs Nonexempt Overtime

Exempt and non-exempt are overtime classifications, not just pay styles. A salaried worker can still be non-exempt, and a job title alone does not remove overtime rights.

The practical difference is direct: non-exempt employees generally receive overtime when they work more than the applicable threshold, while exempt employees do not.

Quick answer

Exemption usually depends on salary basis, salary level, and job duties. Salary alone does not automatically make an employee exempt from overtime.

How non-exempt salary overtime is calculated

If a salaried employee is non-exempt, payroll converts salary into a regular hourly rate, then applies the correct overtime method. Bonuses and commissions may need to be included in the regular rate of pay calculator.