What is an exempt employee?

An exempt employee is not entitled to receive overtime wages. There are three tests that determine if an employee is exempt. The first is a income requirement of at least $23,600 per year. An employee must also be on a salary basis and perform exempt-defined job duties.

Exempt employees perform one of three typical job duties: executive, professional and administrative. An exempt employee supervises the everyday activities of two or more employees, and management is the main part of her position. An exempt employee also has influence on the job status of other employees. This includes hiring, firing, promotions or delegating assignments.