Final answer:
Exempt employees are managers and other employees who are not covered by the FLSA requirements for overtime pay due to their high-level or professional job roles, meeting specific salary and duties criteria.
Step-by-step explanation:
Managers and other employees who are not covered by the Fair Labor Standards Act (FLSA) requirement for overtime pay are known as exempt employees. These employees typically hold high-level or professional positions that qualify them for specific exemptions from the overtime provisions of the FLSA. The criteria for exemption include salary basis, salary level, and job duties tests.
For example, exempt workers might include executives, administrative personnel, professionals, and certain information technology professionals, depending on the nature of their job duties and how much they are paid. Non-exempt employees, on the other hand, are entitled to overtime pay at a rate of one and a half times their regular hourly wage for all hours worked over 40 in a workweek.