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Exempt employee overtime rules: exempt vs non-exempt

LiveRec EditorialUpdated

The overtime rules under the US Fair Labor Standards Act: a non-exempt employee must be paid at least the minimum wage and overtime for hours over 40 in a workweek. An exempt employee, usually a salaried executive, administrative, professional or similar worker who meets duties and salary tests, is not entitled to overtime. Job title alone does not decide it.

Example

An hourly customer support agent is non-exempt and earns overtime after 40 hours. A salaried engineering manager who meets the tests may be exempt. States can set stricter rules.

See FLSA and pay transparency laws.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.