There are several ways to classify employees, but one common way is by their status as either exempt or non-exempt.
Exempt employees are exempt from certain labour laws, such as those regarding minimum wage, overtime pay, and meal and rest breaks. They are typically salaried employees who perform white-collar jobs, such as executive, administrative, or professional positions. They are typically paid a salary, and not by the hour, and their pay does not change based on the number of hours they work.
Non-exempt employees are not exempt from labour laws and are typically paid by the hour. They are entitled to the minimum wage, overtime pay, and meal and rest breaks, as per the regulations. They typically perform blue-collar jobs, such as factory work or manual labour. They are usually paid by the hour and their pay can vary based on the number of hours they work.
It's worth noting that there are other ways to classify employees too, such as permanent and temporary, part-time and full-time, or union and non-union.