Are exempt employees eligible for overtime pay?

Exempt employees are categorized under specific criteria defined by labor laws, notably the Fair Labor Standards Act (FLSA) in the United States. These employees typically include those in executive, administrative, professional, outside sales, and certain computer-related fields. The main characteristic of exempt employees is that they are not eligible for overtime pay, which means they do not receive additional compensation for hours worked beyond the standard 40-hour workweek. This exemption is predicated on certain conditions, such as their job duties, salary level, and method of compensation.

For instance, if an exempt employee works more than 40 hours a week, they are still compensated at their regular salary without additional overtime pay. This class of workers is often expected to fulfill their job requirements irrespective of the number of hours worked, contrasting with non-exempt employees, who must be paid for overtime. This foundational understanding of exempt status is essential for managers and HR professionals in overseeing payroll and compliance with labor regulations.