Exempt Employee

What is Exempt Employee?

Employees are exempt or nonexempt under the federal Fair Labor Standards Act (FLSA). Exempt employment is exempt from the FLSA’s rights and requirements, such as minimum pay and overtime. Employees who are not exempt from the FLSA are covered.

Why Exempt Employee Matters

Only those employed by an employer are eligible for exempt status under the Fair Labor Standards Act; independent contractors or volunteers are not. In addition to the FLSA, companies must follow the laws and pay standards of many other states.