The scope of their job requires that they dedicate a lot of time to projects, but their status as an exempt employee means that their compensation is fixed at a salary. Compensation may vary depending on the company, as it is up to the employer’s discretion whether or not they pay for overtime.Ĭonsider the stereotype of the ambitious company director who stays late at the office four nights a week. Rather than an hourly rate, these employees receive a salary relevant to the work they do not necessarily how many hours it takes to do it.Įmployers are not required to pay exempt employees for any overtime work. You’ll be introduced to the different types of exempt employees, as well as the guidelines that dictate exemption.Īn exempt employee cannot be compensated for overtime pay and is not eligible for minimum wage.Ī non-exempt employee is eligible for overtime pay, and hourly and minimum wages, as per FLSA regulations.Īn exempt employee cannot be compensated for overtime pay and is not eligible for minimum wage. This article addresses the difference between an exempt and non-exempt employee in the workplace. If an employee is “exempt,” they cannot receive overtime pay.

The common factor of exemption is pay for overtime work. You’ve likely been prompted to specify which type you are on a job application, though you might not know what the distinction is.Įxemption is determined based on eligibility requirements and correlates to different workplace benefits. In the workplace, employees can be sorted into two basic categories - “exempt” and “non-exempt.”

Penc meaning professional exempt