Human Resources Professionals Association (HRPA) Practice Exam

The distinction between exempt and non-exempt employees is primarily based on the Fair Labor Standards Act (FLSA) classification, which relates to overtime pay eligibility. Exempt employees are typically not entitled to overtime pay for hours worked over 40 in a workweek, meaning they receive a fixed salary that does not change based on hours worked. These employees often hold positions that involve higher-level responsibilities, such as managerial or professional roles, which justify their exemption from overtime provisions.

In contrast, non-exempt employees are entitled to receive overtime pay for any hours worked beyond the standard 40-hour workweek. These employees are often paid hourly, and their compensation structure includes eligibility for overtime, adhering to the labor laws designed to protect workers who may be in lower-paying or more routine jobs.

Understanding this differentiation is crucial for both employers and employees, as it affects employee classification, compensation structures, and compliance with labor regulations. Therefore, the assertion that exempt employees are not entitled to overtime pay, while non-exempt employees are, accurately reflects the legal framework surrounding employee classifications.