What term describes an employee who is paid a salary and does not receive overtime pay?

• A. Exempt Employee
• B. Nonexempt Employee
• C. Salaried Employee
• D. Temporary Employee

Answer: (A)

Overtime eligibility under the Fair Labor Standards Act determines who must be paid extra for long hours. An employee who is paid a fixed salary and does not receive overtime pay is classified as exempt. Exempt employees are on a salary basis and are not entitled to overtime because they typically perform duties that fall into specific exempt categories (like executive, administrative, or professional roles) and meet the required salary and duties tests. In contrast, nonexempt workers are usually paid hourly and must receive overtime pay for hours worked beyond 40 in a week. A temporary employee is generally nonexempt, often paid hourly. While a salaried worker could be exempt or nonexempt depending on duties, the scenario described—paid a salary and not receiving overtime—fits the exempt classification.