What is the difference between exempt and nonexempt employee

What is the difference between exempt and non-exempt employees? What is the difference between competency-based and traditional pay plans? Describe the concept of pay for performance?

Solution

Exempt employees are the employees who are exempt from the overtime regulations, Most of the management grade and supervisor grade employees fall under this category.

Non-exempt employees are the employees who must paid according to the overtime tules i.e. they must be paid for the every hour of the work they do in overtime with overtime wages. Most of the labor grade work employees fall under this category.