Under the Fair Labor Standards Act (see definition), all employees are either “exempt” or “non-exempt.” Non-exempt employees are entitled to overtime pay. Exempt employees are not. Most employees covered by the FLSA are non-exempt. Some are not. Some jobs are classified as exempt by definition. For example, “outside sales” employees are exempt (“inside sales” employees are non-exempt). For most employees, however, whether they are exempt or non-exempt depends on (a) how much they are paid, (b) how they are paid, and (c) what kind of work they do. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties.
Source: Staffing Industry Analysts