Back to Glossary

Definition of Exempt Employees:

Simply put, an exempt employee is someone exempt from receiving overtime pay. 

It is a category of employees who do not qualify for minimum wage or overtime pay as guaranteed by Fair Labor Standard Act (FLSA). Exempt employees are paid a salary instead of hourly wages and their work is professional in nature. Employers sometimes have an employee benefit package or provide year-end bonuses to compensate for the extra or overtime work that exempt employees do. 

In contrast to exempt employees, non-exempt employees receive overtime pay whenever they work over 40 hours per week, in addition to their hourly wages. 

How do you classify Exempt employees?

The requirements of exempt employees are as follows:

Types of Exempt Employees: 

Executive exemption: 

Professional exemption: 

Computer Exemption: 

Outside sales Exemption: