An exempt employee is a worker who is exempt from Fair Labor Standards Act (FLSA) minimum wage and overtime requirements. You can typically see whether a job is exempt or not exempt in the job description.

Exempt roles commonly include executive, administrative, and certain professional positions, with compensation listed as a salary, based on the job performed rather than hours worked. 

In contrast, non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a week. These roles tend to be hourly and include both manual and technical jobs.
Because exempt employees are not eligible for overtime pay, they generally have greater flexibility in their schedules, which can contribute to improved work-life balance, higher job satisfaction, and better employee retention.