Who are the individuals that are excluded from minimum wage and overtime pay requirements under the Fair Labor Standards Act?

Under the Fair Labor Standards Act (FLSA), exempt employees are individuals who do not qualify for minimum wage and overtime pay protections. This exemption primarily applies to certain categories of workers who perform specific job duties or meet certain criteria regarding their salary level and payment structure. Common classifications of exempt employees include those in executive, administrative, professional, outside sales, and certain computer-related positions.

To qualify as an exempt employee, one must generally meet the following conditions: the employee must earn above a set salary threshold, and their primary job duties must align with the exemption criteria outlined by the FLSA. This means that employers are not obligated to pay these employees at least minimum wage or provide overtime pay for hours worked over 40 in a workweek.

Understanding the distinction between exempt and non-exempt employees is critical for both employers and employees, as it influences payroll practices and compliance with labor laws. Non-exempt employees, in contrast, are entitled to receive minimum wage and overtime pay, while exempt employees have different regulations governing their compensation. Additionally, the other classifications—contract employees and part-time employees—do not inherently indicate exemption from FLSA provisions, as their status depends on specific job duties and compensation structures rather than their employment type.