What is a primary characteristic of exempt employees?

Exempt employees are primarily characterized by their classification under labor laws which determines that they are not entitled to overtime pay. This classification is often associated with specific job duties and salary levels, as defined by the Fair Labor Standards Act (FLSA) in the United States. For example, many exempt positions are those that involve executive, administrative, or professional duties, and these roles typically require a certain level of education or specific skills. Because exempt employees do not receive overtime pay, they are paid a fixed salary for all hours worked, regardless of whether they work over 40 hours in a week.

This distinction is crucial for employers in administering payroll correctly and ensuring compliance with labor laws, as misclassifying employees can lead to legal ramifications and financial penalties. The other characteristics mentioned in alternative responses do not apply to exempt employees: they do not receive overtime pay, they are often salaried rather than hourly, and they might have higher or comparable salaries to non-exempt employees, depending on their role and industry, making the provided answer clearly the most accurate reflection of exempt employee status.