What defines 'exempt' employees under FLSA?

• A. All hourly workers.
• B. Professional, executive, managerial employees not held to designated hours of work, paid a salary, and exempt from FLSA provisions.
• C. Employees who clock in/out.
• D. Any employee who works overtime.

Answer: (B)

Under the Fair Labor Standards Act, being exempt means you’re not covered by the overtime and minimum‑wage rules because your job duties and pay arrangement meet certain criteria. The key factors are a salary basis (paid a salary rather than hourly) and meeting the duties tests for an exempt category—such as executive, professional, or administrative roles. When someone is paid on a salary basis and performs those duties without being tied to a fixed set of hours that would trigger overtime, they are exempt from FLSA overtime provisions. That’s why the described group—professionals, executives or managers who are salaried and not held to designated hours of work—fits the exemption. In contrast, hourly workers, people who clock in/out, or anyone who must be paid overtime are typically nonexempt.