Exempt employees are those who are not entitled to overtime pay under state or federal law. This means they can work more than 40 hours per week without additional compensation for their overtime hours. In order to qualify as exempt, an employee must meet specific criteria.
The most common exemptions include the executive, administrative, and professional exemptions. For example, a CEO who manages a company, a human resources manager who regularly exercises discretion and independent judgment, or a lawyer who holds a law degree and performs legal work for clients would all likely be classified as exempt.
Other exempt positions include certain computer professionals, outside salespersons, and some transportation workers. These positions are defined by specific state or federal regulations, which outline the minimum salary thresholds and job duties required for exemption.