So if you are an employee and the manager wants to reduce labor costs, they can simply terminate employees, and the employees would have to apply for unemployment benefits from the state government.
An example of a non W-2 job is when a business sells their services to another business, even if the business is just 1 person. Such as a business hiring a painter who works by and for themselves. There would be no labor regulations involved here because the painter is not an employee.
W-2 is the federal tax form a business gives to employees stating the taxable income and other information for the year, and 1099 is the federal tax form a business gives to vendors stating the taxable income for the year.
Exempt employees are generally managers, engineers, that perform complex autonomous decision based work. Typically they are paid a monthly salary. But they don't have to be. I'm exempt and get paid hourly, every two weeks and I in theory get overtime.
I have only ever heard of non exempt and exempt to simply distinguish employees that are owed overtime after 40 hours per week and employees that are not owed overtime after 40 hours per week.
There is no federal law about pay frequency, but pretty much all states require at least monthly, if not semi monthly or biweekly, regardless of exempt or non exempt nature of employee.
https://www.patriotsoftware.com/blog/payroll/pay-frequency-r...
The employer may sue for damages in the case an employee does not complete their notice period, but they cannot force them to work it. And the employer would need to demonstrate damages.
But an employer cannot just dump an employee who has an employment contract (implied or explicit).
Not completing your notice period opening you up to a lawsuit sounds like essentially forcing you to work.
In America, it is exceptionally rare to hold someone liable for quitting their job, even if there are damages. Like, if I work the opening weekday shift at a small store, and decide to quit with zero notice, and now there's nobody available to open the store the next day, it's not my problem. Even though the owner could demonstrate the damages of lost sales an during those hours, there's literally nothing they can do.
At a larger corporation, even if my departure causes some major project to fall behind schedule, it's not my problem. Software engineers can quit with zero notice and be completely immune to any legal ramifications.
Unless they are talking about a yearly salary.