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Key Takeaways. Exempt employees usually hold administrative, professional, or executive positions. Theyre exempt from the Fair Labor Standards Acts (FLSA) overtime regulations and, therefore, not entitled to overtime pay. Nonexempt employees are typically paid hourly and perform more manual or technical duties.
Theyre not exempt from FLSA overtime regulations and, therefore, entitled to overtime pay for any hours worked beyond 40 in a work week (i.e., seven consecutive 24-hour periods.)
Salary level test. Employees who are paid less than $23,600 per year ($455 per week) are nonexempt. (Employees who earn more than $100,000 per year are almost certainly exempt.)
The FLSA permits an exemption from minimum wage and overtime pay for employees who meet three tests: a salary level test, a salary basis test, and a job duties test.
Exempt employees in California generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws.
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People also ask

As a side note, non-exempt is not necessarily better than exempt, or vice versa. Its just a matter of incentives. Non-exempt incentivizes you to work more hours to get overtime pay, if youre into that. Exempt incentivizes you to work as efficiently as possible, because you dont get overtime.

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