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What exactly does “exempt” mean?

August 5, 2019


The Fair Labor Standards Act tells us we have two types of employees, non-exempt and exempt. Unfortunately these terms are not very explanatory and people often get them confused. Let me see if I can explain.

Exempt from what?

Basically according to the FLSA the term “exempt” me “you don’t have to pay’ and what you don’t have to pay is overtime. Overtime is a payment of wages that compensate people for working more than 40 hours in a workweek. When you say someone is “non-exempt” that means you MUST pay them overtime whenever they work more than that 40 hours.

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