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Compliance & Labor Law

Exempt Employee

A salaried worker not eligible for overtime pay under FLSA (must meet salary and duties tests).

Full Definition

An exempt employee is one who is excluded from FLSA overtime provisions. To qualify as exempt, an employee must: (1) be paid on a salary basis, (2) earn at least $35,568/year ($684/week), and (3) perform exempt job duties (executive, administrative, professional, computer, or outside sales). Exempt employees receive the same pay regardless of hours worked — they don't earn overtime, but they also aren't docked for working less than 40 hours.

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