In the United States, the Fair Labor Standards Act (FLSA) distinguishes between two types of employees: exempt and non-exempt. Exempt employees are not entitled to overtime pay, while non-exempt employees are. The distinction between exempt and non-exempt employees is based on the employee’s job duties and salary. Generally, exempt employees are those who perform managerial, professional, or administrative duties and who are paid on a salary basis. Non-exempt employees are those who perform hourly or non-managerial work.
There are a number of benefits to being an exempt employee. Exempt employees are not subject to the overtime pay provisions of the FLSA. This means that they can work more than 40 hours per week without receiving overtime pay. Exempt employees are also more likely to be eligible for benefits such as paid time off, health insurance, and retirement plans.