What characterizes positions that are exempt under the Fair Labor Standards Act?

Positions that are exempt under the Fair Labor Standards Act (FLSA) are characterized by being paid an annual salary without eligibility for overtime pay. This means that individuals in these roles are compensated on a salary basis, often meeting specific salary thresholds set by the Department of Labor, and they do not receive additional pay for hours worked beyond the standard 40-hour workweek.

The exemption typically applies to certain categories of employees, such as those in executive, administrative, professional, and outside sales roles. This structure is designed to differentiate between employees who are primarily engaged in duties that require independent judgment and discretion, thus allowing employers to pay a flat annual salary without the need to track overtime hours. Understanding this is essential for compliance with labor regulations and for determining employee classification.