Under the Fair Labor Standards Act (FLSA), which statement best describes exempt versus nonexempt employees?

• A. Exempt employees are typically salaried and not eligible for overtime.
• B. Exempt employees are paid hourly and eligible for overtime.
• C. Exempt employees must earn a sales commission of at least 25%.
• D. Exempt employees are never eligible for overtime regardless of hours.

Answer: (A)

The test is about how overtime rules apply under the FLSA based on exempt versus nonexempt status. Exempt employees are not entitled to overtime pay, as long as they meet the salary basis and duties tests. They are typically paid a salary rather than hourly, which is why they don’t earn overtime for extra hours in a workweek. Nonexempt employees, by contrast, are covered by overtime rules and are usually paid hourly (though some can be salaried), and they receive overtime pay for hours worked beyond 40 in a workweek.

So describing exempt employees as typically salaried and not eligible for overtime best captures the common setup under the FLSA. The other statements mix up how pay type or overtime eligibility works (for example, being paid hourly as exempt, or requiring a commission threshold, or never being eligible regardless of hours), which aren’t accurate general descriptions.