Exempt and non-exempt employee statuses come from the FLSA (Fair Labor Standards Act) employee classification system. Exempt employees make a salary, not an hourly wage, but they are exempt from receiving overtime pay and cannot qualify to receive it. Non-exempt employees, in contrast, earn hourly wages; however, they must receive minimum wages that align with the federal or state wage laws. Unlike exempt employees, non-exempt employees qualify to receive overtime pay when they work over 40 hours a week.

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