Explain the two and how are they different

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Exempt and non exempt is a term meaning whether the employee is exempt from the Fair Labor Standards Act (FLSA).

If the employee is exempt he is a salaried employee and earns a set annual salary which is divided into pay periods during the year... his salary does not change.

If the employee is non exempt he is an hourly employee and is paid for all the hours he works by an hourly wage and must be paid overtime for all hours worked over 40 in a week unless he is in California or Canada than it is overtime for all hours worked over 8 in a day.

For more information check out these links.

Fair Labor Standards Act (FLSA) Coverage (Exempt vs. Non-Exempt -- The Online Wages, Hours and Overtime Pay Resource (http://www.flsa.com/coverage.html)

elaws - Fair Labor Standards Act Advisor (http://www.dol.gov/elaws/esa/flsa/screen75.asp)

The sites above should answer your questions, if you need further answers let me know.

Shirley