Q:  What is the difference between "exempt" and "nonexempt" employees?

A:  "Exempt" employees are not covered by the overtime provisions of the FLSA (Fair Labor Standards Act) and are paid an agreed amount for the job without regard to the amount of time it takes to complete that job. Exempt employees, sometimes called "salaried" employees, should not record hours worked on any time record.

On the other end of the spectrum, "nonexempt" employees are covered by the overtime provisions of FLSA and must record each hour worked on the time record. If the nonexempt employee works more than 40 hours in a single work week, the employee is paid a premium of 1 and 1/2 times for each hour worked over 40 hours either in pay or in accrual of compensatory time.