Exempt employee definition
/What is an Exempt Employee?
An exempt employee is an individual who does not receive overtime pay. Because of this person’s position, responsibilities, and level of decision-making authority, he or she is not covered by the provisions of the Fair Labor Standards Act. Exempt employees are expected to work however many hours are required to get their assigned tasks done, and have full control over their ability to do so. An exempt employee is usually in a management or professional position.
Advantages of Being an Exempt Employee
Exempt employees tend to earn more money than non-exempt employees, and usually work in more fulfilling jobs, since they have more control over their daily activities. In addition, they consistently receive the same paycheck amount, even if their hours worked are sometimes less than normal or even zero.
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Disadvantages of Being an Exempt Employee
The key disadvantage of being an exempt employee is not earning overtime. This means that an exempt person working extra hours is not paid for those hours at all. This can be a major disadvantage when you are working in a position that calls for a significant number of extra working hours per week.
Example of an Exempt Employee
Examples of exempt employees are store managers, doctors, and attorneys.