Employment · HR glossary

Exempt Employee

An exempt employee is excluded from specified wage-and-hour protections under an applicable exemption, commonly discussed under the US Fair Labor Standards Act. Exemption depends on the relevant legal criteria.

Example

An employer reviews the actual duties and any applicable compensation conditions before deciding whether a particular role qualifies for a claimed overtime exemption.

What to keep in mind

A salary or managerial title alone does not establish exemption. Federal and state requirements can differ, so use current official guidance rather than assuming all office or professional employees are exempt.

Further reading

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