exempt employee

Definition

Workers classified as exempt from overtime requirements under FLSA, typically salaried professionals who can work 60 hours and get paid for 40. The 'promotion' that actually decreases your hourly wage.

Example Usage

Becoming an exempt employee sounded prestigious until I calculated that my 50-hour weeks meant I was making less per hour than before my 'promotion.'

Origin

Established by the Fair Labor Standards Act of 1938, with multiple revisions to salary thresholds and duties tests

Fun Fact

The 2024 FLSA salary threshold is $58,656, meaning exempt employees making less should be getting overtime—but many employers misclassify workers to avoid paying it.

Source: U.S. Department of Labor FLSA regulations

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