Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

An "exempt" employee under the Fair Labor Standards Act (FLSA) is defined as one who is not entitled to overtime pay and meets specific criteria related to salary and duties. This definition is rooted in the FLSA's provisions, which outline that certain categories of employees, such as executive, administrative, professional, and outside sales employees, can be classified as exempt if they satisfy both a minimum salary threshold and specific job duty requirements.

This means that exempt employees do not receive overtime compensation for hours worked beyond 40 in a workweek, unlike their non-exempt counterparts, who are eligible for overtime pay. To qualify for exemption, employees must meet specific criteria, including performing higher-level duties and earning a salary above a designated minimum. These criteria ensure that the exempt classification serves its intended purpose of distinguishing between employees who are in a position of responsibility and those who are not.

In contrast, the other choices either misrepresent the criteria for exemption or suggest scenarios that do not align with the FLSA definitions. For example, suggesting that all employees receive overtime pay regardless of criteria undermines the essence of the exempt classification, and limiting exempt status solely to managerial roles overlooks the broader categories of exemptions recognized by the FLSA.