What distinguishes an “exempt” employee from a “non-exempt” employee regarding overtime?

The distinction between exempt and non-exempt employees in the context of overtime primarily revolves around their entitlement to overtime pay under the Fair Labor Standards Act (FLSA). Exempt employees are those who, due to their job duties and compensation structure, are not entitled to overtime pay when they work more than 40 hours in a workweek. This classification typically includes certain categories of employees, such as those in executive, administrative, and professional roles, provided they meet specific criteria set forth by the FLSA.

In contrast, non-exempt employees are those who must be paid overtime at a rate of one and a half times their regular pay for any hours worked beyond 40 in a week. The correct answer accurately reflects the legal framework established by the FLSA regarding overtime eligibility and underscores the differentiation between these two classifications of employees. This classification not only affects payment structures but also impacts workplace policies and labor rights.