Exempt employees are not subject to the Fair Labor Standards Act (FLSA) overtime requirements. Exempt employees are typically salaried workers who are exempt from overtime pay, minimum wage, and other labor protections. Exempt employees are usually professionals, administrators, and executives who are paid a salary rather than an hourly wage.
Non-exempt employees are subject to the FLSA overtime requirements. Non-exempt employees are typically hourly workers who are eligible for overtime pay, minimum wage, and other labor protections. Non-exempt employees are usually non-professionals, such as salespeople, laborers, and clerks. They are generally paid an hourly wage, and their overtime pay is based on their hourly rate.