IPA: /nɒnɪɡˈzɛmpt/
KK: /nɑnɪgˈzɛmpt/
Not free from a requirement or obligation; subject to rules or taxes that apply to everyone.
Employees who are nonexempt must receive overtime pay for hours worked beyond 40 in a week.
A person or thing that is not free from a duty, obligation, or requirement.
The nonexempt employees must adhere to the new overtime policy.
Nonexempt → It is formed from "non-" (meaning not) and "exempt" (from Latin "eximere", meaning to take out or free from). The word "nonexempt" means not free from a requirement or obligation.
Think of 'not' ('non-') being added to 'free from' ('exempt') — that's why nonexempt means not free from a requirement.