It covers the cost of defending claims alleging that an employer failed to pay overtime to a nonexempt employee—that is, an employee who is not exempt from, and therefore eligible to receive, overtime pay under the Fair Labor Standards Act (FLSA). No coverage typically applies under these endorsements to settlements or judgments (i.e., they cover only defense costs), and a sublimit (e.g., $100,000 to $500,000) usually applies.