What is considered an exempt employee?

An exempt employee is a worker who is not legally entitled to overtime pay under state and federal wage and hour law. In Indiana, exempt employees are typically classified as “executive, administrative, professional, and/or outside sales workers” who do not need to be paid overtime wages. To qualify as an exempt employee in Indiana, a worker must meet certain criteria, such as meeting a salary threshold and having a job that primarily involves executive, administrative, or professional duties. Exempt employees are not eligible for overtime pay, regardless of the hours they work, and are instead paid a fixed salary. Exempt employees are also not eligible for the federal minimum wage or state minimum wage laws, and can be required to work more than 40 hours per week without earning overtime premiums. They can also lose their exempt status by not meeting all the criteria for an exempt classification. Some employers do not follow these laws properly, so it’s important for employees to know their rights and whether or not they’re considered exempt. A worker who believes they’re being misclassified as exempt when they should be paid overtime should contact the Wage and Hour Division of the Indiana Department of Labor for assistance.

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What is considered an exempt employee?

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