What Is a Required Salary Under Federal Overtime Law?

For most employees seeking an executive, administrative, or professional overtime exemption under federal law, the required salary is at least $684 per week on a salary basis. That weekly amount equals $35,568 over 52 weeks, but an annual total alone does not establish eligibility for an exemption. The employee must also satisfy the applicable duties test, which focuses on the work actually performed. Some occupations follow different rules, and state or local law may require a higher salary or apply a different test. These requirements determine whether an employee is exempt from federal overtime protections, so a salary amount or job title by itself is not enough.

What Is the Federal Required Salary?

Under the federal Fair Labor Standards Act (FLSA), the salary-level test for many executive, administrative, and professional exemptions generally requires at least $684 per week. The U.S. Department of Labor’s Fact Sheet #17G explains this salary threshold and the salary-basis requirement for the Part 541 exemptions. The federal threshold is one part of the exemption test. It is not a universal minimum salary for every job.

The weekly amount is equivalent to $35,568 over 52 weeks. That conversion does not mean that any pay arrangement totaling $35,568 qualifies. The employee must meet the applicable salary-basis rules as well as the salary-level and duties tests. For a comparison of compensation structures, see this guide to hourly and salary pay.

What Is the Current Federal Threshold?

According to the Department of Labor’s 2026 materials, the general federal salary level for these exemptions remains $684 per week. In May 2026, the Department announced restored regulations retaining that level. The May 2026 announcement also states that certain highly compensated employees are subject to a total annual compensation threshold of $107,432.

The highly compensated employee provision is a separate and more specialized route to exemption. Meeting the total compensation figure alone does not establish eligibility. The applicable duties requirements and other conditions still matter. Regulations and legal developments can change, so an older handbook or job posting may not reflect the current federal rule.

Why Do Job Duties Matter?

A salary or managerial title does not automatically make an employee exempt from overtime. The duties test considers the work the person actually performs and the authority or specialized knowledge that work requires. A job title on an organization chart is not enough to establish that an exemption applies.

Executive duties can include directing other employees’ work and having meaningful input into hiring, firing, or promotion decisions. Administrative duties generally involve independent judgment on significant business matters rather than simply following a fixed script or checklist. The professional exemption typically applies to work requiring advanced knowledge in a field of science or learning. That knowledge is usually acquired through specialized education.

For example, a worker who supervises two people but spends most of the day doing the same production work as the team may not meet the executive duties test, even if the salary is above $684 per week. In contrast, a worker with substantial authority over budgets or vendor contracts may perform qualifying administrative work without having a formal management title. These examples show why the actual duties matter more than the job title.

What Does Being Paid on a Salary Basis Mean?

Being paid on a salary basis generally means receiving a predetermined amount each pay period that is not reduced simply because the employee worked fewer hours. This differs from taking an hourly wage and expressing it as an annual figure. An employee may earn more than $35,568 in a year and still fail the salary-basis test if the pay arrangement does not meet the applicable rules.

For example, improper deductions from an exempt employee’s salary for partial-week absences can affect whether the salary-basis requirement is met. The salary-level figure and the salary-basis rule answer different questions. One concerns how much the employee receives; the other concerns how the pay is structured and administered.

Which Employees May Be Treated Differently?

The general salary requirements for the executive, administrative, and professional exemptions do not apply in the same way to every occupation. Department of Labor guidance identifies outside sales employees, teachers, employees practicing law, and employees practicing medicine as occupations not subject to the general salary requirements described above.

Exempt computer employees may qualify when paid at least $684 per week on a salary basis or when paid hourly at no less than $27.63 per hour. The Department of Labor’s Fact Sheet #17G’s exemption distinctions explain these differences. The applicable exemption and its requirements must be identified before applying a salary threshold.

Why Is Federal Law Not the Whole Review?

The FLSA sets a federal standard, but state or local wage-and-hour rules may also affect the salary level or classification test. The federal figure may therefore be insufficient for a particular employee. The work location matters, especially when an organization has employees in multiple locations.

This is important for remote work. A manager may be based in one state while payroll operates in another and the employee works from a third location. The employee’s actual work location is a key detail when identifying which rules apply.

What Can Happen If a Role Is Misclassified?

Exempt and nonexempt classifications affect overtime eligibility and payroll practices. For a properly nonexempt employee, the employer needs reliable time records and a process for paying applicable overtime. For an exempt employee, the classification should be supported by an analysis of the pay method, salary level, and actual duties.

If a worker is misclassified, the employer may owe unpaid overtime. A payroll process built around the wrong classification can repeat the error across pay periods. Employees who want to understand their status can ask how the role is classified and what duties and pay requirements support that classification. For a related discussion, see whether salaried employees can receive overtime.

How Can Employers Review a Classification?

• Review the employee’s actual day-to-day duties rather than relying on the job title.
• Confirm that the pay arrangement is a predetermined salary and not an hourly rate presented as an annual amount.
• Check whether the weekly salary meets the applicable threshold or whether a specific exception applies.
• Reassess the classification after a promotion, relocation, or significant change in responsibilities.
• Keep relevant job descriptions, pay records, and the reasoning behind the classification.

*This article is for general informational purposes only and is not legal advice.