What term describes employees who are entitled to minimum wage and overtime pay under the Fair Labor Standards Act?

Study for the SHRM US Employment Laws and Regulations Test. Use flashcards and multiple choice questions with hints and explanations. Get exam ready!

The term that describes employees who are entitled to minimum wage and overtime pay under the Fair Labor Standards Act (FLSA) is nonexempt employees. Nonexempt employees are those individuals whose work does not meet the criteria for exemption under the FLSA, which typically applies to managerial roles, certain professional jobs, and other specific categories of employment. As a result, nonexempt employees must be paid at least the federal minimum wage for all hours worked and are entitled to receive overtime compensation for any hours worked beyond 40 in a workweek.

Understanding the classification of employees is crucial under the FLSA, as it directly impacts their rights and the employer's responsibilities. For example, exempt employees, on the other hand, do not receive overtime pay and are usually salaried workers holding specific types of jobs. Contractor employees are not classified under the FLSA's minimum wage and overtime provisions since they are generally considered independent contractors, and part-time employees can fall into either the exempt or nonexempt category based on their specific employment situation. Thus, nonexempt employees clearly refers to those entitled to the protections afforded by the FLSA regarding minimum wage and overtime.

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