Compliance
Exempt Employee
An employee not subject to FLSA minimum wage or overtime provisions, typically meeting specific salary and duties tests.
Definition
Certain employees are exempt from the FLSA's minimum wage and/or overtime pay requirements if they meet specific criteria related to their salary level, salary basis (being paid a fixed salary regardless of hours worked), and job duties (e.g., executive, administrative, professional, outside sales, or certain computer roles). Exemptions are narrowly construed, placing the burden of proof on the employer.