SALARIED WORKERS
Do Salaried Workers Get Minimum Wage? FLSA Exempt Threshold Explained
SHORT ANSWER
Salaried employees are entitled to minimum wage unless they are FLSA-exempt. The exempt threshold is $684/week or $35,568/year (unchanged since 1 January 2020). Even exempt workers must be paid a fixed salary -- the minimum does not apply as an hourly rate, but a weekly floor does.
The Three-Part Federal Exempt Test
The FLSA white-collar exemptions (executive, administrative, professional) require an employee to pass all three of the following tests simultaneously:
TEST 1: SALARY BASIS
The employee must be paid a predetermined, fixed salary that is not subject to reduction based on the quality or quantity of work done in a workweek. Salaried employees who have their pay docked for partial-week absences (other than genuine personal leave) may lose their exempt status for that pay period.
TEST 2: SALARY LEVEL ($684/WEEK AS OF APRIL 2026)
The salary must be at least $684 per week ($35,568 per year). This threshold was set by the 2019 DOL rule that took effect on 1 January 2020. It has not changed since -- see below for the vacated 2024 attempted increase.
TEST 3: DUTIES TEST (EXECUTIVE / ADMINISTRATIVE / PROFESSIONAL)
The employee's primary job duty must fit one of the white-collar exemption categories. A full breakdown is on our sister site. Visit exemptvsnonexempt.com for the complete duties test walkthrough →
State Exempt Salary Thresholds Exceed Federal
Several states set their own exempt salary thresholds significantly above the federal $684/week. An employee must meet the applicable state threshold (whichever is higher) to be classified as exempt in that state.
| State | Weekly Threshold (2026) | Annual Equivalent |
|---|---|---|
| Federal (DOL) | $684 | $35,568 |
| Washington | $1,541.70 | $80,168.40 |
| California | $1,352 | $70,304 |
| NY: NYC / Long Island / Westchester | $1,275 | $66,300 |
| NY: Rest of state | $1,124.20 | $58,458.40 |
| Colorado | $1,057.69 | $55,000 |
| Alaska | $858 | $44,616 |
| Maine | $816.35 | $42,450 |
RECENT DEVELOPMENT
The 2024 DOL Rule Increase Was Vacated
In April 2024, the Biden DOL published a final rule that would have raised the exempt salary threshold in two steps: to $844/week ($43,888/year) from 1 July 2024, and to $1,128/week ($58,656/year) from 1 January 2025. Many employers had already adjusted compensation ahead of these dates.
On 15 November 2024, the US District Court for the Eastern District of Texas vacated the entire 2024 rule, including both the July 2024 and January 2025 increases. The court held that the DOL exceeded its authority by setting the salary level so high that it effectively eliminated the duties test as a meaningful component of the exemption analysis.
As a result, as of April 2026, the current federal exempt salary threshold remains $684/week ($35,568/year) -- the 2019 rule remains the operative standard. The Trump administration has not proposed a new rulemaking. Employers who raised salaries above $684 to prepare for the 2024 rule are not required to lower them; those who held off can continue at $684 while remaining compliant.
For the full story and what this means for classification decisions, see exemptvsnonexempt.com/classification.
What Happens If You Are Misclassified as Exempt?
If your employer classifies you as exempt but you do not actually meet the three-part test (salary basis + salary level + duties test), you may be entitled to:
- Minimum wage for every hour worked in any week where your effective hourly rate fell below the applicable minimum.
- Overtime pay (time and a half) for every hour over 40 in a workweek, going back up to three years for willful violations.
- Liquidated damages equal to the unpaid wages (effectively doubling your recovery).
- Attorney fees and costs if you prevail in litigation.
The most common misclassification error is relying on job title or salary alone without verifying that the duties test is satisfied. A high salary does not automatically make someone exempt; the primary duty must genuinely fit an executive, administrative, or professional role.
UK NOTE
No Exempt Equivalent in UK Law
The UK has no direct equivalent to the FLSA white-collar exemption. The UK National Minimum Wage applies to all "workers" (a category broader than "employees") regardless of whether they are paid a salary or an hourly rate. There is no salary threshold that takes a worker out of minimum wage entitlement. A UK worker earning £50,000 per year on a zero-hours contract is still entitled to at least £12.71 per hour for every hour worked. The only route to non-coverage is genuine self-employment or specific exemptions listed in the National Minimum Wage Act 1998 (share fishermen, family workers, religious community members, armed forces, prisoners in prison work).