What does the term "exempt employee" refer to under the Fair Labor Standards Act (FLSA)?

The term "exempt employee" under the Fair Labor Standards Act (FLSA) refers to employees who are not entitled to overtime pay, primarily due to their specific job duties and responsibilities. The FLSA outlines criteria that must be met for an employee to be classified as exempt, which often includes positions in executive roles, administrative functions, and professional jobs, among others.

Exempt employees typically have higher levels of responsibility and decision-making authority, and they are usually salaried rather than hourly workers. Because they are exempt from the overtime provisions of the FLSA, these employees do not receive additional pay for hours worked beyond the standard 40-hour workweek. Understanding the criteria for exempt status is crucial for employers to ensure compliance with labor laws and proper classification of their workforce.