What is the key difference between exempt and non-exempt employees?

The distinction between exempt and non-exempt employees is primarily centered on overtime pay eligibility. Non-exempt employees are entitled to overtime pay, meaning they should receive additional compensation for hours worked beyond the standard workweek, typically defined as 40 hours. This entitlement is governed by the Fair Labor Standards Act (FLSA) in the United States, which sets forth specific criteria for classifying employees as exempt or non-exempt based on their job duties, responsibilities, and salary level.

Exempt employees, on the other hand, are not entitled to overtime pay. These employees generally fall into categories such as executive, administrative, professional, and outside sales positions, where the nature of their work typically involves higher levels of responsibility and discretion. The classification as exempt means that their regular salary compensates them for all hours worked, regardless of the number of hours beyond the standard workweek.

While it's true that exempt employees often work in management roles, this aspect is not the primary factor differentiating the two classifications. Moreover, the claim that non-exempt employees do not have workplace rights is misleading, as all employees, irrespective of their classification, have fundamental workplace rights under labor laws. Thus, the key takeaway is that the main difference lies in the entitlement to overtime