Exempt Employees

Who are Exempt employees?

Exempt employees are a category of workers distinct from hourly or non-exempt employees. They receive a fixed salary, typically paid monthly, regardless of the hours worked.

They are not eligible for overtime pay, even if they work more than 40 hours per week.

What are the duties and responsibilities of an exempt employee?

Exempt employees typically hold positions with higher levels of authority and responsibility.

1. Executive: CEOs, presidents, vice presidents, and other high-level managers.
2. Administrative: HR personnel, legal staff, accountants, finance professionals, public relations specialists.
3. Professional: Lawyers, doctors, engineers, architects, teachers, software developers, and licensed professionals.
4. Outside Sales: Employees whose primary function is making sales away from the employer’s office.

Everything you need to know about Exempt employees:

1. Exempt employees typically earn higher salaries than non-exempt employees.
2. The exempt employee must get a salary that is twice the state minimum wage for full-time employment.
3. They often receive benefits packages, including health insurance, paid time off, retirement plans, and bonuses.
4. Minimum salary levels are established for exempt employees to qualify for the exemption from overtime pay. These vary by state and federal regulations.
5. Certain Fair Labor Standards Act (FLSA) provisions, including minimum wage and overtime pay requirements, do not apply to exempt employees.