Overtime for exempt employees. Overtime for Exempt Employees. According to the Fair Labor Standards Act (FLSA), some employees are exempt from the payment of an enhanced rate of pay for each hour over forty (40) in a work week, also known as 'overtime'.ccording to the Fair Labor Standards Act (FLSA), some employees are exempt from the payment of an enhanced rate of pay for each hour over forty (40) in a work week, also known as 'overtime'.