What does exempt and non-exempt mean?
Fair Labor Standards Act (FLSA) is a federal law governing various pay policies including overtime pay and recordkeeping. Employees considered non-exempt from the overtime provision of the FLSA are required to keep track of hours worked and earn overtime for hours exceeding the normal 40 hour work week. Employees considered exempt from the overtime provision of FLSA are paid an annual salary and are not required to keep track of hours worked nor do they earn overtime for working more than 40 hours in a work week.
