The U.S. Department of Labor (DOL) announced the final rule for updating the Fair Labor Standards Act (FLSA)’s salary level threshold for overtime eligibility. Effective January 1, 2023, the minimum salary for overtime eligibility will increase to $684 per week, or $35,568 per year.
This is a significant increase from the current threshold of $455 per week, or $23,660 per year. The new threshold is more than double the federal minimum wage of $7.25 per hour.
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.
The Colorado exempt salary threshold is the minimum salary that an employee must be paid in order to be exempt from overtime pay. The threshold is set by the Colorado Department of Labor and Employment (CDLE) and is updated every year. For 2025, the exempt salary threshold is $50,440 per year. This means that employees who are paid less than $50,440 per year must be paid overtime pay for any hours worked over 40 in a week.
There are a number of benefits to being exempt from overtime pay. Exempt employees are not subject to the overtime pay provisions of the Fair Labor Standards Act (FLSA). This means that they can work more than 40 hours in a week without being paid overtime pay. Exempt employees are also typically paid more than non-exempt employees.
The Department of Labor’s (DOL) salary threshold for overtime eligibility is the minimum salary level that employees must be paid to be exempt from overtime pay requirements. The threshold is set by the DOL’s Fair Labor Standards Act (FLSA). As of 2023, the salary threshold is $684 per week, or $35,568 per year. The DOL has proposed raising the salary threshold to $1,026 per week, or $53,490 per year, by 2025.
Raising the salary threshold would have several benefits. First, it would ensure that more workers are eligible for overtime pay. This would help to increase their wages and improve their standard of living. Second, it would reduce the number of lawsuits filed by workers who are misclassified as exempt from overtime pay. Third, it would level the playing field for businesses by ensuring that all employers are subject to the same overtime pay requirements.
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.
