The 2026 FLSA exempt salary threshold: what $684 a week actually means

A salary is one test of three

A common and expensive belief is that putting someone on salary makes them exempt from overtime. It does not. Under the Fair Labor Standards Act, a role qualifies for a white-collar exemption only when it clears all three of the tests below. Miss any one and the employee is non-exempt, which means overtime pay for every hour past 40 in a week.

1. Salary basis. The employee is paid a fixed, predetermined amount each pay period that does not rise or fall with the quality or quantity of work. Docking pay for partial-day absences or for a slow week can break this.
2. Salary level. That fixed amount is at least $684 a week. Up to 10% of the floor can come from nondiscretionary bonuses, incentives, or commissions paid at least once a year.
3. Duties. The actual day-to-day work fits one of the defined exemptions. This is where most misclassifications hide, because the job title carries no weight. The Department of Labor looks at what the person really does.

What each exemption actually asks

The three main white-collar exemptions each have their own duties test. A role has to fit one of them. There are also narrower exemptions for outside sales and for certain computer roles. Those computer roles can be paid hourly at not less than $27.63 an hour instead of on a salary.

Executive Exemption

The primary duty is managing the business or a recognized department. The role regularly directs the work of at least two full-time employees. The person has authority to hire and fire, or real weight in those decisions.

Administrative Exemption

The primary duty is office or non-manual work directly related to management or general business operations. The role exercises discretion and independent judgment on matters of significance.

Professional Exemption

The work requires advanced knowledge in a field of science or learning, usually gained through prolonged specialized instruction. Those are the learned professions. The alternative is original and creative work in an artistic field.

What happened to the 2024 overtime rule

In April 2024 the Department of Labor published a rule that would have raised the federal floor in two steps. The first was $844 a week on 1 July 2024 and the second $1,128 a week on 1 January 2025. A federal court in Texas vacated the entire rule on 15 November 2024. The first step was in force for roughly four months and the second never took effect.

The agency dropped its appeal. On 14 May 2026 it issued a technical amendment. That removed the 2024 language from the Code of Federal Regulations and restored the 2019 numbers. The Department has signaled it may write a new rule, but nothing is on the books yet. The practical takeaway is simple: plan around the current $684 a week, and do not classify anyone against a number that is not law. If a new proposal appears, you will have time to react before it takes effect.

Your state may set a higher bar

The federal figure is a floor, not a ceiling. When a state sets a higher exempt salary threshold, that higher number governs for employees who work in that state. Several states sit above $684 a week. They include California, which ties the exempt salary to twice the state minimum wage, along with New York, Washington, Colorado, Maine, and Alaska. A few set their own figures for computer professionals.

These numbers move most years, often on 1 January. Check the current threshold for every state where you employ people rather than relying on the federal floor. Remember that a few states also apply stricter duties tests than the federal rule does.

State thresholds and duties tests change on their own schedule. Treat any per-state figure you read, here or anywhere, as a starting point. Confirm the current number from the state labor agency before you classify a role.

Three traps behind most misclassifications

• A title is not a test.Manager, coordinator, or analyst on a business card means nothing if the daily work does not match a duties test. The label does not create the exemption.
• Paying a salary is not the same as being exempt.A salaried employee who does not clear a duties test is still non-exempt and still owed overtime. Salary settles one test, not the classification.
• Improper deductions can sink a valid exemption.Docking an exempt employee’s pay for partial days or for working less than a full week can break the salary basis. That puts the whole classification at risk.

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