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From The Collaborative International Dictionary of English v.0.48:
nonexempt \nonexempt\ adj. 1. Not exempt; subject to (some specified) rule. Opposite of exempt. [Narrower terms: liable to(predicate); subject, subject to(predicate)] [WordNet 1.5] 2. Specifically: (U. S. Labor Law) Not exempt from the provisions of the fair labor practises act; -- a term applied mostly to persons who are hourly employees, who are required by law to be treated in certain ways. Many salaried and management personnnel are not covered by the law and are therefore exempt. [PJC]