Federal exempt salary threshold is the minimum salary an employer must pay an employee to be exempt from overtime pay under the Fair Labor Standards Act (FLSA). The threshold is set by the U.S. Department of Labor and is updated periodically. The current threshold is $684 per week or $35,568 per year. In 2025, the threshold is expected to increase to $895 per week or $46,570 per year.
The exempt salary threshold is important because it helps to ensure that employees are paid fairly for their work. It also helps to reduce the number of lawsuits filed by employees who are misclassified as exempt.