An exempt employee is neither eligible for overtime pay nor regular employee benefits
Exempt employees receive a fixed salary rather than an hourly wage. An exempt employee does not receive overtime under the American Fair Labor Standards Act.
The manager of a large chain supermarket like Walmart is considered an exempt employee. If the manager is required to work overtime during peak holiday seasons, they do so without overtime pay. Sometimes the legal issue will turn on whether the employee was working as an independent contractor rather than an employee.
Exempt and Nonexempt employees receive different salaries and benefits depending on the terms of their employment.
