Certified Dietary Manager (CDM) Practice Exam

What characteristic defines an exempt employee?

1. Paid hourly and qualifies for overtime

2. Paid a salary without qualifying for overtime compensation

3. Only works part-time hours

4. Responsible for cleaning duties

The correct answer is: Paid a salary without qualifying for overtime compensation

The defining characteristic of an exempt employee is that they are paid a salary and do not qualify for overtime compensation. This means that regardless of the number of hours worked beyond the standard 40-hour workweek, exempt employees receive the same pay. This classification is typically associated with positions that involve higher-level responsibilities, which may include managerial, professional, or administrative tasks. In contrast, employees who are paid hourly generally fall under non-exempt status, which means they qualify for overtime pay. The classification is significant, as it impacts not only compensation but also the expectations regarding job duties and work hours. The other choices do not encapsulate the definition of exempt employees accurately, focusing instead on pay structure without the context of salary versus hourly rates, or they refer to work arrangements or responsibilities that do not pertain to the exempt status.