There are many different categories of employees depending on the kind of work they do and the kind of compensation they are entitled to. Broadly, employees are classified between two major categories- “exempt” and “non-exempt” employees.
The major difference between the two is the difference between their compensation method.
Non-exempt employees, usually involved in blue collar jobs and manual labor, are generally paid wages on an hourly basis and are also paid for overtime.
Exempt employees, usually involved in administrative office work, are generally paid monthly or annual salaries and they are not entitled to overtime.