diff --git a/hr_payroll_overtime/__manifest__.py b/hr_payroll_overtime/__manifest__.py
index 509838be..85940d58 100644
--- a/hr_payroll_overtime/__manifest__.py
+++ b/hr_payroll_overtime/__manifest__.py
@@ -9,6 +9,7 @@
     'data': [
         'security/ir.model.access.csv',
         'data/overtime_data.xml',
+        'views/hr_contract_views.xml',
         'views/hr_payslip_views.xml',
         'views/hr_work_entry_views.xml',
         'views/resource_calendar_views.xml',
diff --git a/hr_payroll_overtime/models/__init__.py b/hr_payroll_overtime/models/__init__.py
index 3fcc81d4..43cd2c4a 100644
--- a/hr_payroll_overtime/models/__init__.py
+++ b/hr_payroll_overtime/models/__init__.py
@@ -1,3 +1,4 @@
+from . import hr_contract
 from . import hr_payslip
 from . import hr_work_entry
 from . import resource_calendar
diff --git a/hr_payroll_overtime/models/hr_contract.py b/hr_payroll_overtime/models/hr_contract.py
new file mode 100644
index 00000000..e5847963
--- /dev/null
+++ b/hr_payroll_overtime/models/hr_contract.py
@@ -0,0 +1,8 @@
+from odoo import fields, models
+
+
+class HrContract(models.Model):
+    _inherit = 'hr.contract'
+
+    is_overtime_exempt = fields.Boolean(string='Overtime Exempt',
+                                        help='e.g. Agriculture or farm work exempt under the US FLSA.')
diff --git a/hr_payroll_overtime/models/hr_payslip.py b/hr_payroll_overtime/models/hr_payslip.py
index 538d9b9f..e8bcd12e 100644
--- a/hr_payroll_overtime/models/hr_payslip.py
+++ b/hr_payroll_overtime/models/hr_payslip.py
@@ -105,7 +105,7 @@ class HRPayslip(models.Model):
             working_aggregation[work_type][2] = multiplier
 
         week = iso_date[1]
-        if work_type.overtime_work_type_id and work_type.overtime_type_id:
+        if not self.contract_id.is_overtime_exempt and work_type.overtime_work_type_id and work_type.overtime_type_id:
             ot_h_w = work_type.overtime_type_id.hours_per_week
             ot_h_d = work_type.overtime_type_id.hours_per_day
 
diff --git a/hr_payroll_overtime/tests/test_overtime.py b/hr_payroll_overtime/tests/test_overtime.py
index 55b93a68..d316e36c 100644
--- a/hr_payroll_overtime/tests/test_overtime.py
+++ b/hr_payroll_overtime/tests/test_overtime.py
@@ -24,9 +24,11 @@ class TestOvertime(common.TransactionCase):
             'overtime_work_type_id': self.work_type_overtime.id,
         })
         self.employee = self.env.ref('hr.employee_hne')
+        self.contract = self.employee.contract_ids.filtered(lambda l: l.state == 'open')
         self.payslip = self.env['hr.payslip'].create({
             'name': 'test slip',
             'employee_id': self.employee.id,
+            'contract_id': self.contract.id,
             'date_from': '2020-06-11',
             'date_to': '2020-06-15',
         })
@@ -490,3 +492,31 @@ class TestOvertime(common.TransactionCase):
         self.assertEqual(result_data[self.work_type_overtime][0], 1)
         self.assertEqual(result_data[self.work_type_overtime][1], 4.0)
         self.assertEqual(result_data[self.work_type_overtime][2], test_multiplier)
+
+    def test_19_overtime_exempt(self):
+        iso_date = (2020, 24, 1)
+        self.overtime_rules.hours_per_day = 8.0
+        work_data = [
+            (iso_date, [
+                (self.work_type, 4.0, None),
+                (self.work_type, 6.0, None),
+            ]),
+        ]
+
+        result_data = self.payslip._aggregate_overtime(work_data)
+        self.assertTrue(self.work_type in result_data)
+        self.assertEqual(result_data[self.work_type][0], 1)
+        self.assertEqual(result_data[self.work_type][1], 8.0)
+        self.assertTrue(self.work_type_overtime in result_data)
+        self.assertEqual(result_data[self.work_type_overtime][0], 0)
+        self.assertEqual(result_data[self.work_type_overtime][1], 2.0)
+        self.assertEqual(result_data[self.work_type_overtime][2], 1.5)
+
+        self.payslip.contract_id.is_overtime_exempt = True
+        self.assertTrue(self.payslip.contract_id)
+        self.assertTrue(self.payslip.contract_id.is_overtime_exempt)
+        result_data = self.payslip._aggregate_overtime(work_data)
+        self.assertTrue(self.work_type in result_data)
+        self.assertEqual(result_data[self.work_type][0], 1)
+        self.assertEqual(result_data[self.work_type][1], 10.0)
+        self.assertTrue(self.work_type_overtime not in result_data)
diff --git a/hr_payroll_overtime/views/hr_contract_views.xml b/hr_payroll_overtime/views/hr_contract_views.xml
new file mode 100644
index 00000000..0e6b9a61
--- /dev/null
+++ b/hr_payroll_overtime/views/hr_contract_views.xml
@@ -0,0 +1,15 @@
+<?xml version="1.0" encoding="utf-8"?>
+<odoo>
+
+    <record id="hr_contract_form_inherit" model="ir.ui.view">
+        <field name="name">hr.contract.form.inherit</field>
+        <field name="model">hr.contract</field>
+        <field name="inherit_id" ref="hr_contract.hr_contract_view_form"/>
+        <field name="arch" type="xml">
+            <xpath expr="//field[@name='wage_type']" position="after">
+                <field name="is_overtime_exempt" />
+            </xpath>
+        </field>
+    </record>
+
+</odoo>