What is meant by “exempt” and “nonexempt” in overtime policy?
Nonexempt employees are those covered by the Fair Labor Standards Act and thus eligible for overtime pay. Exempt employees are not covered by the act’s provisions and thus are not eligible.

The designation of an employee as FLSA exempt or nonexempt typically rests on the duties actually performed by the employee, not merely occupational or organizational title. Certain lower-paid jobs may be eligible even if they involve supervisory duties. Under the FLSA, employees in executive, administrative, and professional positions, as well as employees in foreign areas, are considered exempt.

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