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The Manager's Pocket Guide to Employee Relations by Terry L. Fitzwater

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FLSA—FAIR LABOR STANDARDS ACT

This act regulates a minimum wage(s) and overtime, and addresses the use of child labor. It also provides definitions for exempt and nonexempt employees:

Exempt—Those employees classified as executive, administrative, professional, or outside sales are “exempt” from the overtime provisions of the act. Employers do not have to pay them overtime (but can choose to do so in some cases).

Nonexempt/Hourly—All others who must be paid overtime.

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