An employee who is paid by the hour and is eligible for overtime pay is classified as what?

• A. Exempt employee
• B. Salaried employee
• C. Commissioned employee
• D. Nonexempt employee

Answer: (D)

Overtime eligibility under wage-and-hour rules defines whether a worker is exempt or nonexempt. Nonexempt employees are covered by overtime provisions and are typically paid hourly or for nonexempt salaried roles, receiving overtime pay (usually 1.5 times the regular rate) for hours worked over 40 in a workweek. Exempt employees are generally paid on a salary and must meet specific duties tests, which means they aren’t entitled to overtime.

If someone is paid by the hour and is eligible for overtime, they fall into the nonexempt category. The other labels describe different pay structures or exemptions but do not align with both hourly pay and overtime eligibility.