Wouldn't that be called creative non-fiction? If not, how about Non-fiction with a tetch of humour and a smidgeon of white lies mixed in? Or, how about truth mixed with white lies and hammered together with a bit o'humour? Or...
I like the way you think, Jody. I don't know what to call my satire either because I have to change all the real names to protect the guilty or risk being disowned. Maybe a Dragnet disclaimer? Then it would be creative non-fiction.
I'd call Jody's example humor; to me that's a different category. Perhaps it's satire, it depends on the writing.
As for creative nonfiction, I think of it as largely essay form, though it often involves full-blown book-length work. Examples would include Sebastian Junger's The Perfect Storm. He obviously didn't interview the men who were lost on the ship, but he interviewed other swordfishermen and their families and the people involved with the company for which the Andrea Gale sailed. He interviewed people on the rescue ships. He spoke with capatains who'd been in touch with the Andrea Gale during the storm. He created the account based on that. He did the strong reporting you expect of a journalist, but a purist wouldn't call it nonfiction because there's a lot of speculation within the story. Gripping stuff. Creative nonfiction.
I googled creative non-fiction and Wikipedia says:
Creative nonfiction may be structured like traditional fiction narratives, as is true of Fenton Johnson's story of love and loss, "Geography of the Heart," and Virginia Holman's "Rescuing Patty Hearst." When book-length works of creative nonfiction follow a story-like arc, they are sometimes called narrative nonfiction. Creative nonfiction often escapes traditional boundaries of narrative altogether, as happens in the bittersweet banter of Natalia Ginzburg's essay, "He and I," in John McPhee's hypnotic tour of Atlantic City, "In Search of Marvin Gardens," and in Ander Monson's playful, experimental essays in "Neck-Deep and Other Predicaments."
Does the above help?
If you can categorize Erma Bombeck's "At Wit's End" and other books as creative nonfiction, then that includes satire and humor writing. Yes, it helps. Thank you.
Speaking as an agent, if you have to over-explain a category, then you have a problem, which can also be an opportunity. Under current structures, everything is either fiction or non-fiction, even when not exactly either. When you jump beyond set structures you risk causing confusion, which in turn can cause people to move on.