Exempt Employee: What Does It Mean?

An exempt employee is a worker who is classified under the Fair Labor Standards Act (FLSA) as exempt from overtime pay and minimum wage requirements. To qualify, employees generally must be paid a salary above a minimum threshold and perform certain types of work — typically executive, administrative, or professional duties. Exempt employees are paid for the job, not the hours, meaning they don't receive extra pay for working more than 40 hours per week. Understanding your classification matters because it affects your compensation rights and how your employer can legally structure your work hours.