An exempt worker is a worker who does not receive overtime pay or is not eligible for the minimum wage.
Exempt workers are paid a salary, not an hourly wage, and their work is of an executive or professional nature.
Exempt employees are different from non-exempt employees who must be paid at least the minimum wage and overtime when they work more than the standard 40-hour work week.
The details and rules governing exempt and non-exempt employees are governed by the Fair Labor Standards Act (FLSA).
The FLSA includes the following job categories as tax-exempt: professional, administrative, executive, third-party sales, and computer technicians.
Details vary by state, but if an employee is in the above categories, earns a wage, and earns at least $684 per week or $35,568 per year, then they are considered exempt.