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exempt and non exempt employee

Exempt employees are defined as employees not covered by overtime requirements or certain other provisions of the Fair Labor Standards Act (FLSA), and typically include salaried professional individuals and outside sales people who do not have to be paid overtime for hours worked over 40 per week.

(noun)

  1. An example of an exempt employee is a CEO who does not get paid overtime if he works more than 40 hours per week.
  2. An example of a non-exempt employee is a cashier who makes an hourly wage of $10 an hour and who is paid overtime if she works more than 40 hours a week.

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