What is the current federal minimum salary for exempt employees in 2025?

The current federal minimum salary for overtime-exempt employees under the EAP exemption is $844 per week ($43,888 annualized), effective July 1, 2024, per DOL Final Rule 89 FR 32842. This applies uniformly to Executive, Administrative, and Professional exemption categories. Employees earning below this floor are non-exempt regardless of their duties or job title. Check whether your state imposes a higher floor, as several states exceed this federal level significantly.

Which states have exempt salary floors higher than the federal minimum?

For 2025, Washington ($1,332.80/week), California ($1,320/week), New York City and surrounding counties ($1,237.50/week), upstate New York ($1,161.65/week), and Colorado ($1,057.69/week) all set exempt salary floors above the federal $844/week. The higher of federal or state always governs for employees based in that state. Multi-state employers must apply the correct floor for each employee's work location.

Can you pro-rate an exempt employee's salary for a partial workweek?

No. The salary-basis test under FLSA is a weekly test, not an annual one. Per DOL Wage and Hour Division Fact Sheet #17G, an employee paid less than the applicable weekly floor in any workweek fails the salary-basis test for that week and must receive overtime pay for hours over 40 in that week. Attempting to pro-rate exempt salaries for short weeks creates immediate compliance exposure.

How often will federal salary thresholds be updated going forward?

The 2024 Final Rule (89 FR 32842) introduced a triennial automatic-update mechanism, with the first scheduled update on July 1, 2027. This means the salary floor is no longer a static number that holds for years between rulemaking cycles. Employers should build a threshold review into their compliance calendar well before each scheduled update. Note that this mechanism is subject to ongoing litigation, so verify enforcement status before relying on the specific date.

What is the computer employee exemption hourly rate?

The computer employee exemption allows an hourly-rate alternative of $27.63 per hour, per 29 CFR §541.400. This rate has been unchanged since 2004. It applies to systems analysts, programmers, software engineers, and similar roles paid on an hourly basis. Salaried computer employees use the standard EAP weekly floor instead. The exemption does not cover IT managers or help-desk roles.

18 FLSA Overtime-Exemption Salary Benchmarks for 2026

What are the current federal salary floors for FLSA overtime exemption?

The current federal weekly salary floor for the Executive, Administrative, and Professional (EAP) exemption is $844 per week ($43,888 annualized), effective July 1, 2024, per DOL Final Rule 89 FR 32842. Any salaried employee earning below this floor is non-exempt by operation of law, regardless of job title or duties. The prior Phase 1 floor was $684 per week ($35,568 annualized), which had been in effect since January 1, 2020, under 29 CFR Part 541.

Benchmark	Weekly Floor	Annualized	Effective Date	Source
EAP Floor, Phase 1	$684	$35,568	Jan 1, 2020	DOL, 29 CFR Part 541
EAP Floor, Phase 2 (Current)	$844	$43,888	Jul 1, 2024	DOL Final Rule 89 FR 32842
Part-Year / Partial-Week Floor	$684 (no pro-ration)	N/A (weekly test)	Ongoing	DOL Fact Sheet #17G

A critical detail: the salary-basis test is a weekly test, not an annual one. Per DOL Wage and Hour Division Fact Sheet #17G, an employee paid less than the applicable weekly floor in any workweek fails the test for that week. You cannot pro-rate exempt salaries for short workweeks. If you have employees whose salaries were set during the 2004 to 2019 period at the old $455/week floor and never revisited, those positions require immediate review. EasyClocking by WorkEasy Software helps payroll teams track hours accurately so that when you reclassify employees as non-exempt, every overtime hour is captured from day one. The platform's overtime compliance tools flag hours exceeding 40 per workweek in real time.

What is the Highly Compensated Employee threshold for 2024 and 2025?

The HCE annual total-compensation threshold is $132,964 per year, effective July 1, 2024, per DOL Final Rule 89 FR 32842. Before that date, the HCE threshold was $107,432 per year under 29 CFR §541.601, in effect since January 1, 2020. Employees meeting the HCE threshold qualify for a simplified duties test, but they must also receive at least $844 per week on a salary or fee basis.

Benchmark	Annual Threshold	Weekly Salary Component	Effective Date	Source
HCE, Phase 1	$107,432	$684/week minimum	Jan 1, 2020	DOL, 29 CFR §541.601
HCE, Phase 2 (Current)	$132,964	$844/week minimum	Jul 1, 2024	DOL Final Rule 89 FR 32842
Computer Employee Hourly Alternative	N/A	$27.63/hour	Since 2004	DOL, 29 CFR §541.400

The computer employee exemption deserves separate attention. A computer employee paid hourly at or above $27.63 per hour may qualify for the computer-employee exemption without meeting the weekly salary-basis test, per 29 CFR §541.400. This rate has not been updated since 2004. It applies to systems analysts, programmers, and software engineers as defined in that regulation, not to IT managers or help-desk staff. For employers in construction, manufacturing, or warehousing who employ in-house IT staff on hourly rates, this alternative threshold matters for classification decisions.

How do state salary floors compare to the federal minimum?

Several states set exempt salary floors far above the federal level. Washington leads at $1,332.80 per week ($69,305.60 annualized) for 2025, followed closely by California at $1,320 per week ($68,640 annualized). If you operate in multiple states, the higher of federal or state always governs for employees based in that state.

State / Region	Weekly Floor	Annualized	Effective Date	Source
Washington	$1,332.80	$69,305.60	Jan 1, 2025	WA Dept. of Labor & Industries
California	$1,320.00	$68,640.00	Jan 1, 2025	CA Labor Code §515; CA DIR
New York (NYC, Nassau, Suffolk, Westchester)	$1,237.50	$64,350.00	Jan 1, 2025	NY DOL, 12 NYCRR Part 142
New York (Remainder of State)	$1,161.65	$60,405.80	Jan 1, 2025	NY DOL, 12 NYCRR Part 142
Colorado	$1,057.69	$55,000.00	Jan 1, 2025	CDLE, COMPS Order #40
Federal (for comparison)	$844.00	$43,888.00	Jul 1, 2024	DOL Final Rule 89 FR 32842

New York's geographic segmentation creates a common payroll-audit failure point: a single employer with offices in New York City and upstate must apply different floors to employees in each location, per NY DOL regulation 12 NYCRR Part 142. California does not recognize the federal HCE exemption at all. Colorado's COMPS Order #40 covers industries that FLSA may not reach. For multi-state employers in construction or staffing who move workers between states, these differences mean a single classification policy built on the federal floor will create gaps. EasyClocking by WorkEasy Software's multi-state overtime compliance reporting surfaces location-based pay data so you can compare employee salaries against the correct state floor.

What do the historical thresholds tell you about audit risk?

The federal EAP salary floor sat at $455 per week ($23,660 annualized) for 15 years, from August 23, 2004, through December 31, 2019, per DOL Final Rule 69 FR 22122. The HCE threshold during that same period was $100,000 per year. Employers who set exempt classifications during this era and never revisited them face the highest audit risk today.

Benchmark	Value	Period	Source
Prior EAP Weekly Floor	$455/week ($23,660/year)	Aug 2004 to Dec 2019	DOL Final Rule 69 FR 22122
Prior HCE Annual Threshold	$100,000/year	Aug 2004 to Dec 2019	DOL Final Rule 69 FR 22122
Current EAP Floor	$844/week ($43,888/year)	Jul 2024 to present	DOL Final Rule 89 FR 32842
Current HCE Threshold	$132,964/year	Jul 2024 to present	DOL Final Rule 89 FR 32842

The 15-year freeze between 2004 and 2020 created a generation of classifications that are now stale. If you have salaried positions that were set at or just above $455/week a decade ago and raises kept pace with inflation but not with the new regulatory floor, those positions may now sit below the $844 threshold. This is the most common finding in WHD investigations: not deliberate misclassification but outdated salary levels that no one re-checked. The 2024 Final Rule's triennial automatic-update mechanism (first update scheduled for July 1, 2027, per Section IV of DOL Final Rule 89 FR 32842) means salary floors will now adjust on a regular cycle. Build a threshold review into your HR calendar well before each update. EasyClocking by WorkEasy Software's compliance audit readiness audit trail logs every classification decision, pay rate change, and overtime calculation, giving you defensible documentation if a review occurs.

How should you use these benchmarks to classify employees?

Start with the federal weekly floor applicable to your current payroll date and compare every salaried employee's weekly pay against it. Anyone below the floor is non-exempt by operation of law, regardless of title, duties, or historical classification. That comparison is the first gate; nothing else matters until you clear it.

After the federal check, apply state floors for any employee working in California, New York, Colorado, or Washington. The higher of federal or state always governs. For employees earning above the standard EAP floor, check the HCE threshold before applying the simplified duties test. Use the historical benchmarks to identify employees whose salaries were set during the 2004 to 2019 period and never revisited. These positions represent the highest reclassification risk.

Three practical decision rules to follow:

If a salaried employee earns below the applicable weekly floor (federal or state, whichever is higher), reclassify before the next payroll run regardless of duties test outcome.
If an employee's total annual compensation falls between $107,432 and $132,964, re-verify HCE eligibility under the current threshold.
Treat the triennial update mechanism as a compliance-calendar trigger and schedule a threshold review at least 90 days before each scheduled update.

For employers in construction time tracking or staffing who manage seasonal headcount swings, classification reviews should happen at the start of each busy season when new salaried supervisors are often brought on. EasyClocking by WorkEasy Software captures every hour worked from the first punch, so if a reclassified employee's overtime needs to be calculated retroactively, you have a complete, auditable record rather than reconstructed timesheets.

What happens when you get classification wrong?

Misclassifying a non-exempt employee as exempt means you owe back wages for every overtime hour worked during the misclassification period. The FLSA allows recovery of up to two years of back wages (three years if the violation is found to be willful), plus an equal amount in liquidated damages, per 29 U.S.C. §216(b). The financial exposure scales with employee count and the duration of the error.

Beyond federal exposure, states like California add their own penalties and allow private attorney general actions under PAGA. New York has its own wage-order enforcement mechanisms. The common thread is that classification errors compound over time. A single misclassified employee earning just below the salary floor who works modest overtime creates a small liability. Fifty misclassified employees across three states over two years creates a significant one.

The audit-defense question is straightforward: can you produce a complete, attributable record showing what each employee earned, what hours they worked, and what classification decision was made and when? Paper timesheets and spreadsheet sign-offs make this difficult. EasyClocking by WorkEasy Software's time tracking platform logs punches, edits, approvals, and pay-rate changes in an accurate records audit trail. That record is what you hand to an investigator or attorney, not a reconstructed estimate. The system's automated overtime calculations apply your configured rules, so the math matches the record from the point of capture forward.

How does the platform from EasyClocking by WorkEasy Software support FLSA classification decisions?

EasyClocking by WorkEasy Software connects verified time capture directly to payroll through 20+ integrations (DOL, EasyClocking by WorkEasy Software integrations page), eliminating the manual re-entry that introduces errors between classification decisions and actual pay. When you reclassify an employee from exempt to non-exempt, the platform captures overtime hours from the first workweek of the change, applies your configured overtime rules (federal, state, or custom), and flows approved hours into payroll without spreadsheet reconciliation.

For multi-state employers, the platform tracks employee location alongside hours worked, which is critical when different states impose different salary floors. If your Washington-based supervisor earns above the federal floor but below Washington's $1,332.80/week requirement, you need location-aware records to catch the gap. The system's payroll integration exports carry department, cost code, and location tags so your payroll team can verify classification compliance by jurisdiction.

Implementation for most sites takes days, not months, per EasyClocking by WorkEasy Software's published deployment timeline. That speed matters when a reclassification decision requires immediate time capture for newly non-exempt employees. Biometric and mobile time clocks from EasyClocking by WorkEasy Software work in the conditions where reclassified workers actually operate: job sites, factory floors, warehouses, and fleet vehicles.

How EasyClocking by WorkEasy Software Supports These Benchmarks

EasyClocking by WorkEasy Software captures every hour worked through biometric, mobile, and web time clocks proven in industrial conditions, then flows approved overtime calculations into payroll through 20+ direct integrations. When salary-threshold changes trigger reclassification decisions, the platform provides an auditable record of hours, edits, approvals, and pay-rate changes from the first punch forward. Most sites go live within days, which means newly reclassified employees can begin tracked time capture before the next payroll run closes.

18 FLSA Overtime-Exemption Salary Benchmarks for 2026

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