What s the difference between non-exempt and exempt employees?

The difference in non-exempt and exempt employees relates to who is legally required overtime compensation. In terms of overtime pay in accordance with federal law, exempt employees refer to people who are not required to be paid overtime for working more than 40 hours a week. The reasons for this can vary depending on the individual and position. Non-exempt employees are the ones who must be paid overtime for any hours over 40 that they work per week.

In other words, they are not exempt from the law requiring that employers pay their employees one and a half times their regular salary for hours worked past a full-time schedule.