An example of a non-exempt employee would be:

A piece-worker is classified as a non-exempt employee primarily because their compensation is based on the amount of work they complete rather than a fixed salary. Under the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay when they work more than 40 hours in a workweek.

Piece-workers often fall into this category because their earnings are typically calculated on a productivity basis, which aligns with the characteristics of non-exempt status. This means that they must be compensated for overtime work at one and a half times their work rate, thereby providing the necessary protections granted by labor laws.

On the other hand, the other examples—lawyers, teachers, and CEOs—are generally classified as exempt employees. They usually meet specific criteria regarding their job duties and salary thresholds that place them in a category where overtime pay is not required. Lawyers and teachers often have advanced degrees and professional responsibilities that qualify them as exempt, while CEOs are typically considered management-level employees, falling into the same exempt category.

This distinction between exempt and non-exempt status is crucial for payroll professionals to ensure compliance with wage and hour laws and to properly calculate pay and overtime for employees.