Exempt Salary Threshold Calculator (FLSA and State)

The Salary Level Test: How It Is Calculated

Being paid a salary does not by itself make an employee exempt from overtime. Under the Fair Labor Standards Act, an executive, administrative or professional employee is exempt only if three things are all true:

1. The pay meets the salary level: at least $684 a week, which is $35,568 a year.
2. The pay is on a salary basis.
3. The job meets a duties test.

The check divides the salary down to a week: annual ÷ 52, biweekly ÷ 2, semimonthly × 24 ÷ 52, monthly × 12 ÷ 52. The regulation gives the equivalents directly: $1,368 every two weeks, $1,482 twice a month or $2,964 a month.

Worked example. $34,000 a year ÷ 52 = $653.85 a week, below $684, so the employee is non-exempt and overtime is owed for hours over 40 whatever the job title. $36,000 ÷ 52 = $692.31 a week, which passes the salary level. That employee is exempt only if the duties test is also met.

2026 Salary Thresholds: Federal and State

State overtime law applies on top of the FLSA, so an employee below the state level is owed overtime under state law even when the federal level is met. California’s level is twice the state minimum wage for full-time work. Washington’s rises to $1,773.00 a week ($92,196.00 a year) in 2027 for employers with 51 or more workers, per L&I’s September 30, 2026 announcement. Some other states, including New York, also set their own levels. Check your state labor department before relying on the federal figure.

What Happened to the 2024 Overtime Rule

DOL’s 2024 rule would have raised the federal level above $684. On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated it in Texas v. U.S. Department of Labor, and the Northern District of Texas did the same in Flint Avenue, LLC v. DOL on December 30, 2024. The Fifth Circuit dismissed both appeals in May 2026. On May 15, 2026, DOL published a technical amendment that removed the vacated text and restored the 2019 figures: $684 a week, and $107,432 for highly compensated employees.

Other Rules: Bonuses, Highly Compensated Employees and Territories

• Bonuses: nondiscretionary bonuses, incentives and commissions paid at least annually can cover up to 10% of the federal level, $3,556.80 a year. The weekly salary must still be at least $615.60. If the bonus falls short, the employer can make one catch-up payment in the next pay period after the year ends.
• Highly compensated employees: total annual pay of at least $107,432, including at least $684 a week in salary, plus customarily and regularly performing at least one exempt duty.
• Computer employees: may be paid $27.63 an hour instead of a salary.
• Territories: $455 a week in Puerto Rico, Guam, the U.S. Virgin Islands and the Northern Mariana Islands, and $380 in American Samoa, for employers other than the federal government.
• No salary test: teachers, practicing lawyers and doctors, and medical interns and residents are not subject to the salary level.

Scenarios

The $35,000 salary works out to $673.08 a week. That is under $684 but above the $615.60 floor, so a $2,000 nondiscretionary bonus paid during the year brings the total to $37,000.00 and meets the level. A discretionary holiday bonus would not count.

Salary Basis: The Test People Forget

An exempt employee must get the same predetermined amount each pay period, not reduced because of the quality or quantity of the work. They must get the full salary for any week in which they do any work. Docking pay because the business closed early or had no work breaks the salary basis. Extra pay for extra hours is allowed, as long as the guaranteed salary is at least $684 a week.

Common Mistakes

• “Salaried means exempt.” A salaried employee below $684 a week, or one who fails the duties test, is owed overtime.
• Using the vacated 2024 numbers. The federal level is $684 a week again.
• Ignoring the state level. A $60,000 salary meets federal and Colorado law but not California’s $70,304.
• Prorating for part-time. The federal $684 is a weekly floor and is not reduced for a part-time schedule. California’s level is written for full-time work.
• Counting discretionary bonuses. Only nondiscretionary bonuses and commissions count, and only up to 10%.

What This Check Does Not Decide

It tests pay, not duties. Whether a job is executive, administrative, professional, computer or outside sales work depends on the actual duties under 29 CFR part 541, and state definitions can differ. The calculator does not cover states other than those listed, local rules, or outside sales roles. It also does not cover back-pay calculations. If a classification is in doubt, workers can contact the Wage and Hour Division (1-866-487-9243) or their state labor agency. Employers should have an employment lawyer review job duties before treating a role as exempt.

Frequently Asked Questions

How to Use This Calculator

1. Enter the salary — and how often it is paid; the calculator converts it to a weekly amount.
2. Add nondiscretionary bonuses — commissions or incentive pay paid at least annually; up to 10% of the federal level can count.
3. Pick where the employee works — the federal level, a territory, or California, Colorado, Maine or Washington.
4. Read both results — the federal and state salary tests; duties still need checking separately.