The FLSA establishes minimum wage, overtime pay, equal pay, record keeping, and child labor standards for employees who are covered by the act. You also come under the minimum wage requirements of the law. Required to account for all time worked as well as the use of sick, vacation, and other leave time on an hourly basis. Exempt employees are not eligible for overtime pay and are not covered by the overtime pay provisions of the federal Fair Labor Standards Act. Exempt employees are not subject to a reduction in pay based on quality or quantity of work.
Major exemptions are for executive, administrative, professional, and outside sales workers.
Compensated on a salary basis. Compensation is not subject to reduction of pay based on the quality or quantity of work.