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What are "exempt" and "non-exempt" employees?

The most frequent question asked in the area of overtime compensation is: "Am I entitled to overtime?" Both Federal and California law require that most employees receive overtime compensation for hours worked over 40 hours a week or 8 hours a day. "Non-exempt" employees are those who are covered by these rules and should receive the minimum hourly wage and overtime pay. Those employees who are considered "exempt" from the overtime rules do not receive additional compensation for hours worked in excess of 40 hours a week or 8 hours a day.

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