A non-exempt employee is a worker who is covered by the Fair Labor Standards Act (FLSA) and entitled to both minimum wage protections and overtime pay. Non-exempt employees must be paid at least the federal minimum wage and receive 1.5 times their regular rate of pay for any hours worked beyond 40 in a workweek. Most hourly workers fall into this category, though some salaried employees can also be non-exempt depending on their pay level and job duties. Knowing your classification helps ensure you're being compensated fairly and legally.