The salary threshold for exempt employees is the minimum salary that an employee must be paid in order to be exempt from overtime pay requirements. The Fair Labor Standards Act (FLSA) sets the federal minimum salary threshold for exempt employees, but states may also set their own salary thresholds. In 2023, the federal minimum salary threshold for exempt employees is $684 per week, or $35,568 per year. The salary threshold for exempt employees is adjusted periodically to keep pace with inflation.
The salary threshold for exempt employees is important because it helps to ensure that employees are paid fairly for their work. Exempt employees are not eligible for overtime pay, so it is important to make sure that they are paid a salary that is commensurate with their experience and responsibilities. The salary threshold also helps to prevent employers from misclassifying employees as exempt in order to avoid paying overtime wages.
