exempt employee

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Exempt employees are those ineligible for overtime pay or minimum wage from the Fair Labor and Standards Act. Usually exempt employees are in professional, administrative, executive, outside sales, and computer-related positions which have a base pay of at least $35,568 for the year. Employees may prefer a base-pay over hourly pay for the specified pay for accomplished work, not time worked, and they often receive compensation for extra work through bonuses in lieu of overtime pay. 

[Last updated in June of 2021 by the Wex Definitions Team]