The Fair Labor Standards Act (FLSA) establishes parameters for minimum wage, overtime pay, recordkeeping, and employing minors.
“Non-Exempt” positions are those which are covered by the FLSA. Non-exempt employees are considered hourly employees. They are entitled to a minimum wage of not less than $7.25 and must receive overtime or compensatory pay for hours worked over 40 in a week.
“Exempt” positions are those which are not covered by the FLSA. Exempt employees generally are considered to be “salaried” positions, and do not normally receive additional compensation for hours worked above 40 in a work week.
To qualify as exempt under the FLSA, employee must meet both a salary and duties test, which are outlined in the guidelines established by the Department of Labor.