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Exempt Employee

Definition - What does Exempt Employee mean?

An exempt employee is an employee whose job is excluded from the overtime and minimum wage rules covered under the U.S. Fair Labor Standards Act (FLSA). While some jobs are excluded from coverage under the FLSA rules in the statute itself, others jobs are excluded because they are governed under other specific federal labor laws.

Justipedia explains Exempt Employee

The FLSA mandates that any employee who works more than 40 hours a week needs to be paid one and a half times their regular wage for the additional time. All employees that are not entitled to overtime pay under the FLSA are classified as "exempt." Generally, professional employees, executives, administrative workers, and certain other employees are classified as exempt if they earn over a certain amount on a yearly basis or that are paid salary instead of being paid on an hourly basis, and are paid full salary.

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