Exempt Employee

Primary tabs

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]