- not eligible to be released from a particular obligation or liability, as taxation, payment of debts, etc.: Administering a tax policy that fairly distinguishes exempt from nonexempt organizations is a complex affair.People who declare insolvency and have any nonexempt property can expect to see it sold or liquidated to pay creditors.
- relating to or being an employee covered by obligations imposed on employers under the Fair Labor Standards Act, including overtime pay, reasonable break time, and a weekly salary equivalent to at least the minimum wage for hours worked: Hourly and nonexempt employees are required to record actual hours worked.
