FLSA Salary Threshold: Current Amounts and State Variations

Current Federal Threshold

As of January 2025, the federal minimum salary for most FLSA exemptions is:

• $684 per week
• $35,568 per year
• Source: DOL 2024 Final Rule

Recent History

The DOL proposed raising the threshold to $1,128/week ($58,656/year) in 2024, but federal courts blocked the increase. The current threshold reflects the 2020 rule update that raised it from $455/week ($23,660/year).

Special Cases

Computer Employees

Computer employees can be paid on either a salary basis ($684/week) or an hourly basis of at least $27.63/hour.

Highly Compensated Employees (HCE)

Employees earning at least $107,432 in total annual compensation may qualify under a shortened duties test. They must still customarily perform at least one exempt duty from the executive, administrative, or professional categories.

Outside Sales

The outside sales exemption has no salary requirement. The employee must simply meet the duties test.

State Variations

Several states set their own (higher) thresholds. When state and federal law differ, the standard providing greater employee protection applies:

• California: Typically 2x state minimum wage for full-time (varies annually)
• New York: Varies by region (NYC, downstate, remainder of state)
• Colorado: Has its own threshold under the Colorado Overtime and Minimum Pay Standards
• Washington: Tied to a multiplier of state minimum wage
• Maine, Pennsylvania: Have their own state-specific thresholds

Always check your state's labor department for current local requirements.

The Salary Basis Test

Meeting the dollar threshold is not enough. The employee must also be paid on a "salary basis," which means:

• Receiving a predetermined, fixed amount each pay period
• Not subject to reduction based on quality or quantity of work
• Receiving the full salary for any week in which work is performed

Certain deductions are allowed (full-day absences for personal reasons, unpaid disciplinary suspensions for safety rule violations), but improper deductions can jeopardize the exempt status of the employee and potentially all employees in the same job classification.