Ace the APHR Challenge 2026 – Unleash Your HR Superpowers!

The primary difference between exempt and non-exempt employees lies in their eligibility for overtime pay. Exempt employees are typically salaried workers whose positions meet specific criteria set by the Fair Labor Standards Act (FLSA). Because these employees are considered to be in managerial or professional roles that often require them to perform duties beyond a standard work schedule, they do not qualify for overtime pay, even when they work more than the standard 40 hours in a week.

In contrast, non-exempt employees are those who are entitled to receive overtime pay for any hours worked beyond the typical 40-hour workweek. This classification is crucial for ensuring that workers who are eligible for overtime are adequately compensated for additional hours worked. The distinction helps organizations manage payroll and compliance with labor laws effectively. Understanding this difference is essential for HR professionals as it affects employee classification, payroll calculations, and compliance with state and federal labor regulations.