Exempt Employee

An exempt employee is an employee who is not entitled to overtime pay under specific wage-and-hour rules when all applicable exemption requirements are met.

Being paid a salary does not automatically make an employee exempt. Employers generally need to evaluate the employee’s pay and actual job duties against the requirements of the applicable exemption. Misclassification can lead to unpaid overtime and other wage-and-hour issues, so job titles alone should not drive the decision.