Contractors are not subject to labor laws.

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?"

Also not subject to federal pay withholding (for taxes). So its important to get it right.

Exempt and non-exempt are terms that only apply to employees. Contractors would generally be expected work work hourly (like non-exempt) or on a project basis (like exempt) depending on their negotiated contract. But in general I don't think that this kind of employment law applies to contractors.