What is the FLSA salary threshold for 2026?

The federal salary threshold is $684 per week ($35,568 per year) in 2026. This is unchanged from the 2019 Trump-era rule. The Biden administration raised it to $844/week (July 2024) and $1,128/week (January 2025), but both increases were vacated by the Eastern District of Texas on 15 November 2024. California requires $1,352/week, Washington $1,541.70/week, and New York metro $1,275/week in 2026.

Last verified April 202629 CFR 541.600-606

The FLSA Salary Test in 2026: $684/Week, Explained

Q: Can I be salaried and non-exempt?

Yes. Salary describes a pay method (fixed amount per period). Non-exempt describes legal status under the FLSA (overtime must be paid for hours over 40). These are independent. A salaried non-exempt employee receives their fixed salary regardless of hours worked but also receives additional overtime pay (1.5x their regular rate) for each hour over 40 in the workweek. Many employers use this structure for professional roles that don't fully meet the duties test.

Q: Are all salaried employees exempt?

No. Salary is only one of three required tests for exemption. An employee must also (1) be paid at least $684/week and (2) have primary duties that qualify under one of the six exempt categories. Many salaried employees fail the duties test and remain non-exempt despite receiving a salary.

Q: What breaks the salary basis?

The most common salary basis violations are: (1) deducting pay for partial-day absences when no work is available or when the employee is sick (absent FMLA), (2) deducting pay for partial-day absences without a written sick-leave policy, (3) making deductions based on quality or quantity of work, and (4) making reductions that leave the employee below $684/week. When an employer makes improper deductions as a matter of practice, the salary basis can be lost for the entire class of affected employees, not just the individual.

The current federal salary threshold for exempt employees is $684/week ($35,568/year). The Biden-era increase to $844/week (July 2024) and $1,128/week (January 2025) was vacated by a federal court in November 2024. Here is the full story, what breaks the salary basis, and how state rules now far exceed the federal floor.

$684/wk

Federal threshold (in force)

$35,568/yr

$107,432/yr

HCE threshold

$684/wk salary minimum

$27.63/hr

Computer employee hourly alt.

or $684/wk salary

Federal threshold unchanged since 2019. State rules apply where higher. Last verified April 2026.

The three parts of the salary test

The salary test has three distinct components, all of which must be satisfied. Passing two out of three is not sufficient to establish exemption.

Salary Basis

29 CFR 541.602

The employee must receive a predetermined amount of compensation each pay period - weekly or less frequently - that is not subject to reduction because of variations in the quality or quantity of work performed. The employee must receive the full salary for any week in which they perform any work, regardless of the number of days or hours worked.

This means: if an employer docks an exempt employee's pay because business is slow, or because the employee came in two hours late on a Tuesday, or because the employee produced below expectations this week, the salary basis is broken. It does not matter if it only happens once - if it reflects a policy or practice, the exemption can be lost for an entire class of employees.

Salary Level

29 CFR 541.600

The predetermined amount must be at least $684 per week ($35,568 annualised). This is the federal floor. Several states have enacted significantly higher thresholds, and the higher of the two always applies. California ($1,352/wk), Washington ($1,541.70/wk), and New York metro ($1,275/wk) now exceed the federal threshold by amounts that make the federal figure almost irrelevant for employers operating in those states.

No Improper Deductions

29 CFR 541.603

The employer must not make improper deductions from the exempt salary. If deductions are made as a matter of practice (not an isolated inadvertent error), the employee loses exempt status for the period during which the improper deductions were made. Importantly, improper deductions affecting only a subset of the workforce may still affect the entire class if they reflect a policy of making such deductions.

What breaks the salary basis

These deductions BREAK salary basis:

✗Deductions for partial-day absences (unless absent under FMLA or written sick leave policy)
✗Deductions for lack of available work when employee is ready and willing
✗Pay reductions based on poor performance or productivity
✗Deductions that regularly reduce pay below $684/week
✗Suspensions without pay for partial weeks (unless for major safety violations under written policy)

These do NOT break salary basis:

✓Unpaid FMLA leave (full or partial days)
✓Full-day disciplinary suspensions for serious misconduct under a written policy
✓Offsetting jury duty, witness, or military pay against salary
✓Deductions in full-week increments (no work performed in the entire week)
✓Isolated inadvertent payroll errors promptly corrected
✓Reasonable pay reductions from business changes (different role, reduced duties)

The 2024-2025 rule battle: a dated timeline

26 Apr 2024

Biden DOL published final rule. Phase 1: $844/week effective 1 July 2024. Phase 2: $1,128/week effective 1 January 2025. HCE raised to $151,164.

1 Jul 2024

Phase 1 theoretically took effect. Some employers raised salaries in anticipation.

15 Nov 2024

Judge Sean Jordan, Eastern District of Texas, issued a nationwide vacatur in State of Texas v. U.S. Dept of Labor. The court held the DOL exceeded its authority under the FLSA by setting a threshold so high that the duties test became irrelevant. Threshold reverted immediately to $684/week.

1 Jan 2025

Planned Phase 2 increase to $1,128/week. Never took effect - the vacatur prevented it.

24 Apr 2025

Trump DOL moved to hold the appeal in abeyance at the Fifth Circuit. The new administration signalled it would not defend the Biden rule.

April 2026

Status quo: $684/week ($35,568/yr) remains the federal threshold. No new proposed rule from the Trump DOL. Historical base rate for major FLSA threshold revisions is approximately one per 15 years.

Will the threshold ever increase again?

The honest answer is: yes, eventually - but not imminently. The Trump administration has shown no interest in raising the threshold, and the Fifth Circuit abeyance filing effectively withdrew the Biden-era rule from further consideration. The DOL could propose a new rule at any time under a future administration, but rulemaking is a multi-year process (proposed rule, comment period, final rule, effective date, potential litigation).

Historical pattern: the threshold was $250/week from 1975 to 2004 (29 years unchanged), raised to $455/week in 2004 (49 years at lower figure), and raised to $684/week in 2019 (15 years at $455). The pattern suggests long periods of stasis punctuated by occasional large adjustments. Employers who raised salaries in anticipation of the Biden rule may have done so unnecessarily, but there is nothing to undo - the higher salaries are now part of employee expectations.

How states have leapfrogged federal

While the federal threshold stagnated at $684/week, several states tied their exempt-salary thresholds to the state minimum wage - which has continued rising. The result is a growing gap between federal and state requirements that makes the federal figure largely irrelevant for large-state employers.

State	2026 Threshold	Federal Multiple
Washington	`$1,541.70/wk`	2.25x federal
California	`$1,352.00/wk`	1.98x federal
New York (metro)	`$1,275.00/wk`	1.86x federal
New York (rest)	`$1,199.10/wk`	1.75x federal
Colorado	`$1,086.25/wk`	1.59x federal
Federal	`$684.00/wk`	baseline

Full state rules including daily overtime and stricter duties tests →

Frequently asked questions

Can I be salaried and non-exempt?

Yes. Salary is a pay method (fixed amount per period regardless of hours). Non-exempt is a legal status (overtime required for hours over 40). These are completely independent. A salaried non-exempt employee receives their salary plus additional overtime pay for hours worked over 40 per week. Many employers use this for professional roles that do not meet the full duties test.

Are all salaried employees exempt?

No. To be exempt, an employee must pass three tests: salary basis, salary level ($684/wk), and duties test. Many salaried employees fail the duties test. Job title does not determine exemption. A salaried 'coordinator' who performs clerical work without real decision-making authority is likely non-exempt despite being paid a salary.

Does PTO count toward the $684/week minimum?

PTO itself does not count toward the $684/week salary requirement, but using PTO to cover an absence does not constitute a reduction in salary either. If an employee uses PTO and receives their full salary for that week, the salary basis is maintained. The issue arises when no PTO is available and the employer deducts pay for the absence.

Can bonuses count toward the $684/week salary threshold?

Generally no. The $684/week must be paid as a true salary - a predetermined fixed amount. However, for the Highly Compensated Employee test ($107,432 annual), nondiscretionary bonuses and commissions do count toward the total annual compensation figure, provided the employee still receives at least $684/week in salary.

Educational content only. Employment classification is fact-specific; consult an employment attorney or your state labour department. Data verified April 2026.