Employment Law Practice Exam 2025 – Comprehensive Prep Resource

Being classified as "exempt" under the Fair Labor Standards Act (FLSA) means that an employee is not entitled to receive overtime pay for hours worked beyond the standard 40-hour workweek. This exemption is typically based on the employee's job duties and salary level.

To qualify as exempt, employees generally have to meet specific criteria, which often include performing executive, administrative, professional, outside sales, or certain types of computer-related work. Additionally, they must earn a salary above a certain threshold set by the FLSA. Because of this classification, exempt employees are expected to fulfill their job duties without the guarantee of additional pay for extra hours worked.

This classification is crucial for employers and employees alike, as it impacts how work hours are managed and how payroll is structured. Understanding the criteria for exemption helps ensure compliance with labor laws and enables employees to understand their rights and obligations regarding work hours and compensation.