The Fair Labor Standards Act (FLSA) sets a minimum wage and overtime pay requirements for employees in the United States. The FLSA also includes a salary threshold that determines which employees are exempt from overtime pay. In 2023, the salary threshold is $684 per week, or $35,568 per year. The salary threshold is adjusted every few years to keep pace with inflation. The next adjustment is scheduled to take place in 2025.
The FLSA salary threshold is important because it determines which employees are eligible for overtime pay. Employees who are paid below the salary threshold are entitled to overtime pay if they work more than 40 hours in a week. Employees who are paid above the salary threshold are not eligible for overtime pay, regardless of how many hours they work.
