 In this presentation we will talk about payroll controls and documentation. Exempt and non-exempt employees. It's important to know these terms because the regulations will differ depending on whether an employee qualifies as exempt or non-exempt. So in other words, the employees that are exempt are not subject to the Fair Labor Standards Act, FLSA wage and hours laws. So amongst other things in particular, the overtime calculation would not be present or not be needed or required for employers given the employees who are exempt. So if they're exempt from that status then they aren't required to have, amongst other things, an overtime calculation based on the federal law, the Fair Labor Standards Act. Now why would that be the case? Well, if someone is exempt then typically we're dealing with highly skilled workers.