Exempt Employee Definition

An employee who is exempt is one to whom the overtime pay laws enacted by the Federal Labor Standards Act do not apply.

Exempt Employee Extended Definition
When a company hires employees who qualify as exempt, they are not required by law to pay these employees overtime, regardless of their hours.

To determine who is exempt, a company must follow particular standards, such as earning above a set threshold. Some jobs, for instance, automatically qualify as exempt, while others must meet certain requirements to be exempt.

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Last Updated By

Rachel Blakely-Gray | Apr 14, 2023