A non-exempt employee is an individual who is not exempt from the Fair Labor Standards Act (FLSA) regulations regarding minimum wage and overtime pay. These employees are entitled to receive at least the federal minimum wage for all hours worked and are eligible for overtime pay at a rate of 1.5 times their regular hourly wage for hours worked beyond 40 hours in a workweek.

Example
If a non-exempt employee works 45 hours in a single workweek and their regular hourly wage is $15 per hour, they would receive their regular pay for the first 40 hours ($15 x 40 = $600) and overtime pay for the additional 5 hours ($15 x 1.5 x 5 = $112.50). In total, they would earn $712.50 for that week.

Non-exempt employees often include hourly workers, clerical staff, and other roles where the nature of the work does not meet the FLSA criteria for exemption from minimum wage and overtime provisions.