exempt employee

Definition

An employee in a position which falls under the jurisdiction of the US Fair Labor Standards Act (FLSA) but is exempt from the provisions governing overtime pay. To be classified as exempt the employee must either be specifically declared exempt in the Act, such as agriculture workers, or meet the exempt standards regarding minimum pay, receive a salary which cannot be reduced due to a an occasional reduction in hours worked per day, and type of work conducted. The minimum pay is $23,600 per year and duties should be classified as professional, administrative or executive.
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exempt commodity exempt income