Exempt employees are left out of the Fair Labor Standards Act (FLSA), and are not eligible for overtime pay. 

To qualify, an employee must receive a salary (not hourly) of at least $684 a week (or $35,568 annually). Also, the employee must not fall under any of the other exemptions set forth by the United States Department of Labor.

Six categories help outline duties that exempt employees perform. Those categories include executives, administrators, professional employees, outside sales professionals, computer employees, and highly compensated employees. The FSLA duties test can help classify whether an employee should be exempt or non-exempt.

Related Terms: Fair Labor Standards Act (FLSA), Non-Exempt Employee, Overtime