It keeps using the word "employee". How does this apply to contractors and consultants? Do they negotiate their own terms? Are high earning ones expected to be exempt like employees?
However, if it is discovered that a "contractor" is an employee everywhere but on paper, then the employer can still be liable for labor law violations. IIRC part of the test is "Can they choose their own hours? Do they use their own tools or are they provided/maintained by the employer? Does the employer dictate how they must do their work, or only specify deliverables?"