What does it mean to be exempt or non-exempt?

Non-exempt employees are:

1. covered by the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).
2. paid on an hourly or a salary basis.
3. paid overtime for hours worked in excess of 40 hours in any workweek.

Exempt employees are:

1. excluded from overtime requirements.
2. not paid overtime.
3. not required to record their hours worked.