Exempt vs. Non-Exempt Employees

Exempt employees are those who are not entitled to overtime pay, typically because they perform specific job duties or earn a salary above a certain threshold, often in executive, professional, or administrative roles. Non-exempt employees, on the other hand, are eligible for overtime pay, meaning they earn time-and-a-half for hours worked beyond the standard 40 in a week. This distinction primarily comes from the Fair Labor Standards Act (FLSA) and is important for determining compensation and work expectations in the workplace. Understanding these classifications helps ensure fair treatment and compliance with labor laws.