--- title: Exempt vs. Non-Exempt Employee - What’s the Difference? description: Are you questioning if your employee is eligible for overtime pay? It depends on if they are an exempt or nonexempt employee. Read more to learn more! image: https://www.megapayusa.com/hubfs/Canva%20images/Canva%20Design%20DAFdeqo-Da0.png --- [![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-1.svg) ![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-white.svg)](https://www.megapayusa.com/) [How We’re Different](https://www.megapayusa.com/how-we-are-different) Payroll + More ## Feature-rich software. Stress-free services. 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A full suite of payroll, timekeeping, and Human Resources tools and services helps your business run – and grow. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-1.svg) [Payroll](https://www.megapayusa.com/payroll) [Pay Options](https://www.megapayusa.com/payroll#payroll-pay-options) [Reporting](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Tracking](https://www.megapayusa.com/payroll#payroll-reporting-tracking) [Financing](https://www.megapayusa.com/payroll#payroll-financing) [Compliance](https://www.megapayusa.com/payroll#payroll-compliance) [Deductions](https://www.megapayusa.com/payroll#payroll-additional-services) [Workers Comp](https://www.megapayusa.com/payroll#payroll-additional-services) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-2.svg) [Timekeeping](https://www.megapayusa.com/timekeeping) [Scheduling](https://www.megapayusa.com/timekeeping#timekeeping-scheduling) [Tracking](https://www.megapayusa.com/timekeeping#timekeeping-tracking) [Compliance](https://www.megapayusa.com/timekeeping#timekeeping-compliance) [Devices](https://www.megapayusa.com/timekeeping#timekeeping-devices) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu-icon-3.svg) [Human Resources](https://www.megapayusa.com/hr) [Onboarding](https://www.megapayusa.com/hr#hr-onboarding) [Compliance](https://www.megapayusa.com/hr#hr-compliance) [Benefits](https://www.megapayusa.com/hr#hr-benefits) ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/service-menu.png) [Meet the platform.](https://www.megapayusa.com/platform) Harness the power of our cloud-based, fully integrated platform, customized to 10+ industries [Pricing](https://www.megapayusa.com/pricing) [Become a Partner](https://www.megapayusa.com/partners) Resources ## Resources for growing companies. A suite of videos, tools, and templates for you and your people. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-2.svg) [Video Library](https://www.megapayusa.com/videos) Learn the ins and outs of the Megapay platform - and get it all done even faster. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/resources-menu-icon-3.svg) [HR Tools](https://megapayusa.portal.zywave.com/) HR videos, customizable handbook templates, onboarding & offboarding forms, and more. [Human Resources NEW](https://www.megapayusa.com/human-resources) [news](https://www.megapayusa.com/the-mega-pulse) client login ## Select an account to log in. Payroll [Payroll (new)](https://megapayusa.evolutionpayroll.com/hcm/#/) [Payroll (old)](https://secure.netlinksolution.com/nextgen/?firm=404480) [Payroll + HR](https://megapayusa.evolutionadvancedhr.com/Secure/Home.aspx) [For Employees](https://megapayusa.evolutionpayroll.com/ess#/login) Swipeclock [For Employers](https://megapayusa.payrollservers.us/pg/login.aspx) [For Employees](https://clock.payrollservers.us/#/clock/web/login) HR Support [HR Live Support](https://www.megapayusa.com/human-resources) [HR 360](https://www.megapayusa.com/hr) [contact sales](https://www.megapayusa.com/contact) [![Megapay](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/logo-footer.svg)](https://www.megapayusa.com/) Payroll, personally™ Megapay is an all-in-one customizable payroll, timekeeping and HR software that offers built-in support from dedicated personal payroll experts. 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[< Return to the blog](https://www.megapayusa.com/blog/all) ![](https://www.megapayusa.com/hubfs/Canva%20images/Canva%20Design%20DAFdeqo-Da0.png) [Payroll & Tax](https://www.megapayusa.com/blog/tag/payroll-tax) [HR](https://www.megapayusa.com/blog/tag/hr) # Exempt vs. Non-Exempt Employee - What’s the Difference? Based on the [Fair Labor Standards Act](https://www.dol.gov/agencies/whd/flsa) (FLSA) of the US, the main difference between an exempt and non-exempt employee is their **eligibility for overtime pay.** ##### Let’s break down what an exempt and non-exempt employee is! Exempt Employee: - An exempt employee is **not eligible** for overtime pay. Most salaried exempt employees receive a predetermined **salary that generally does not change based on the number of hours worked**. Non-Exempt Employee: - A [non-exempt employee](https://www.investopedia.com/terms/n/nonexempt-employee.asp) is eligible for overtime pay for any hours worked over 40 hours per week. Overtime rate pay should be at least 1.5x their regular pay.   ### Should your employees be exempt or non-exempt? Ask yourself the following questions to help determine this: 1. What are their annual earnings? 2. Are they performing physical labor? 3. What are their job duties? If your employee earns less than $684 weekly or $35,568 annually, performs physical labor, and their duties do not require supervisory or decision making - **your employee is non-exempt.**   ### What about my part-time employees? Part-time employment is not addressed in the FLSA, but the law still applies for overtime pay. If the part-time employee is non-exempt and exceeds working 40-hours in a work week they should receive overtime. Part-time employees are to be paid at least 1.5x their regular rate for each hour worked over 40 hours in a work week.   ### And exemptions?  Certain employees might be excluded from receiving overtime pay, as well as both minimum wage and overtime pay - based on the FLSA. These exemptions are very specific and as an employer, you should review and verify the requirements for each exemption. Your local Wage and Hour Division (WHD) office can provide more information for you. [Find your WHD here](https://www.dol.gov/agencies/whd/contact/local-offices). You can also find information about [exemptions on the dol.gov website](https://web.archive.org/web/20221006170032/https://www.dol.gov/agencies/whd/compliance-assistance/handy-reference-guide-flsa#8).   ### To wrap it up The major difference between exempt and non-exempt is if they are eligible for overtime pay. Non-exempt are covered by the FLSA and there are specific guidelines you should follow.   Need help tracking hours? and overtime, [contact MegaPay to help](https://www.megapayusa.com/contact)!  Related articles [Browse all articles](https://www.megapayusa.com/blog/all) [Federal](https://www.megapayusa.com/blog/tag/federal) [Payroll & Tax](https://www.megapayusa.com/blog/tag/payroll-tax) [HR](https://www.megapayusa.com/blog/tag/hr) ### Can I Hire an Employee Without a Social Security Number? Simply put, no. A person needs a Social... [Read more](https://www.megapayusa.com/blog/hire-employee-without-social-security-number) [Federal](https://www.megapayusa.com/blog/tag/federal) [Payroll & Tax](https://www.megapayusa.com/blog/tag/payroll-tax) [State](https://www.megapayusa.com/blog/tag/state) ### Get Tax Credits for Helping Employees With Childcare We recently recorded a conversation... 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Website content provided is for informational purposes only and is not legal or professional advice. Each situation is unique; please consult a qualified professional for guidance specific to your case. We are here to answer your questions and help you with any of your payroll processing, time-keeping, and HR compliance needs. ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-1.svg)Payroll ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-2.svg)HR ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-3.svg)Timekeeping ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-4.svg)Benefits ![](https://www.megapayusa.com/hubfs/raw_assets/public/Megapay/images/pop-btn-icon-5.svg)Onboarding Download our Chrome Extension! Make your Megapay online experience more simple and seamless than ever with our free Chrome extension. 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