A more thorough explanation:

A nonexempt employee is a worker who is entitled to receive an hourly wage and overtime pay under The Fair Labor Standards Act (FLSA). This means that they must be paid at least the federal or state minimum wage for every hour worked and receive overtime pay for any time worked over 40 hours. Nonexempt employees are entitled to time and a half their regular rate of pay for each hour worked over the overtime threshold.

Examples of nonexempt employees include:

• Contractors
• Freelancers
• Interns
• Servers
• Retail associates

Nonexempt employees are typically workers who do not have administrative or executive positions and take direction from supervisors. Even if they earn more than the federal minimum wage, they are still considered nonexempt if they are eligible for overtime pay.

For 2020, employees must earn a minimum of $684 per week or $35,568 per year to have exempt status. Employees who earn below this amount are designated nonexempt.

Exempt employees, on the other hand, are not eligible for overtime pay or minimum wage. They receive a salary for the work they perform rather than an hourly rate, and employers pay them for the work they do instead of the number of hours they take to complete the task.

The examples provided illustrate the definition of nonexempt employees. Contractors, freelancers, interns, servers, and retail associates are all jobs that typically earn an hourly wage and are eligible for overtime pay. These workers are entitled to receive at least the minimum wage and overtime pay for any time worked over 40 hours.