The 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 U.S. Department of Labor and is updated every few years. The current threshold is $684 per week, or $35,568 per year. In 2025, the threshold is expected to increase to $828 per week, or $43,000 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 prevent employers from misclassifying employees as exempt in order to avoid paying overtime.
