State-Level Overtime and Exemption Rules in 2026
The federal FLSA sets a floor - states can and do exceed it. The higher of the federal or state rule always applies. With several major states setting thresholds double the federal floor, the "just meet the $684/week" approach exposes most multi-state employers to significant state-law liability.
2026 exempt salary thresholds by state
| State / Region | 2026 Weekly | 2026 Annual | Basis / Authority | Last Updated |
|---|---|---|---|---|
| Washington | $1,541.70 | $80,168.40 | 2.25x state min wage ($17.13/hr), both employer sizes; steps to 2.5x by 2028 | Jan 2026 |
| California | $1,352.00 | $70,304 | 2x state min wage ($16.90/hr) x 40 hrs (CA Labor Code) | Jan 2026 |
| New York (NYC, Nassau, Suffolk, Westchester) | $1,275.00 | $66,300 | NY DOL Annual Wage Order | Jan 2026 |
| New York (rest of state) | $1,199.10 | $62,353 | NY DOL Annual Wage Order | Jan 2026 |
| Alaska | $1,120.00 | $58,240 | 2x state min wage ($14.00/hr) x 40 hrs (in force 1 Jul 2026) | Jul 2026 |
| Colorado | $1,111.23 | $57,784 | CO DLSS 2026 PAY CALC Order (the COMPS Order sets the tests; PAY CALC sets the dollar figures) | Jan 2026 |
| Maine | $871.16 | $45,300 | 3,000x state min hourly ($15.10/hr) | Jan 2026 |
| All other states | $684.00 | $35,568 | Federal FLSA (2019 rule, currently in force) | 2019 |
Source: California DIR, Washington L&I, New York DOL, Colorado DLSS, Alaska DOL, Maine DOL. Thresholds rechecked September 2026. Alaska stepped to $1,120/wk on 1 July 2026 when the state minimum wage reached $14.00/hr (Ballot Measure 1, 2024); the next Alaska step is 1 July 2027. Colorado's $57,784 is the 2026 figure published in CDLE INFO #1 (18 December 2025), which lists the series $45,000 (2022), $50,000 (2023), $55,000 (2024), $56,485 (2025), $57,784 (2026), inflation-adjusted thereafter. The 2027 figures each state has published so far are in the next table.
2027 exempt salary thresholds already announced
Four of the higher-threshold states have published their 1 January 2027 numbers. Washington is the big mover: large employers step to 2.5 times the minimum wage, a 15% jump in one year. Colorado's 2027 exempt salary threshold is $1,151.23/week ($59,864/year) in the proposed 2027 PAY CALC Order, which is still a proposal until it is adopted after the 2 November 2026 hearing. New York is the exception: its minimum wage does not rise in 2027.
| State | 2027 Weekly | 2027 Annual | Basis / Status |
|---|---|---|---|
| Washington (51+ employees) | $1,773.00 | $92,196.00 | 2.5x the $17.73/hr 2027 minimum wage. Final (L&I, 30 Sep 2026) |
| Washington (1-50 employees) | $1,595.70 | $82,976.40 | Stays at 2.25x the $17.73/hr minimum wage. Final (L&I, 30 Sep 2026) |
| California | $1,392.00 | $72,384 | 2x the $17.40/hr 2027 minimum wage x 40 hrs. Final (DIR; Department of Finance certified 31 Jul 2026) |
| Colorado | $1,151.23 | $59,864 | Proposed 2027 PAY CALC Order (30 Sep 2026), minimum wage $15.71/hr. Hearing 2 Nov 2026 |
| Maine | $905.79 | $47,101.08 | 3,000x the $15.70/hr 2027 minimum wage. Final (Maine DOL) |
| New York | Not yet posted | - | NY DOL: minimum wage stays $17.00 (NYC, LI, Westchester) and $16.00 (rest of state) on 1 Jan 2027 because an economic off-ramp was triggered |
Colorado's proposed order also sets the 2027 highly technical computer employee rate at $36.10/hour and the state highly compensated employee threshold at $134,694 a year. Washington's 2027 computer professional rate is $62.06/hour for employers of every size. California's 2027 computer professional rate had not been published when we checked on 17 October 2026; the DIR normally issues it in late October. Alaska's next step is 1 July 2027, not 1 January.
Sources, checked 17 October 2026: Washington L&I 2027 minimum wage release; California DIR news release 2026-66; Colorado DLSS proposed 2027 PAY CALC Order; Maine DOL 2027 minimum wage release; New York DOL minimum wage page.
State spotlight: California
$1,352/wk2026 salary threshold
$70,304/yrAnnual equivalent
$16.90/hr2026 state min wage basis
California's threshold is calculated as 2x the state minimum wage multiplied by 40 hours per week, and updates automatically each time the minimum wage increases. It will continue rising in future years.
Stricter duties test: California requires that the employee spend more than 50% of their work time engaged in exempt duties - not merely that exempt work be the "primary duty" as the federal standard allows. An employee who spends 45% of their time on exempt management and 55% on non-exempt production does not qualify under California law, even if exempt under federal law.
Daily overtime: California requires overtime for all hours over 8 in a single workday (1.5x pay), double time for hours over 12 in a single workday, plus 1.5x for the first 8 hours worked on the seventh consecutive day of the workweek, and double time for hours beyond 8 on the seventh consecutive day. Federal law has no daily overtime requirement.
No employer-of-record workaround: Remote employees who live and primarily work in California are subject to California law regardless of where the employer is incorporated or headquartered.
State spotlight: Washington
Washington has the highest exempt salary threshold in the country for 2026 at $1,541.70/week ($80,168.40/year). This is calculated as 2.25 times the state minimum wage ($17.13/hour). L&I splits employers into small (1-50 employees) and large (51 or more), and in 2026 both sit on the same 2.25x multiplier, so the dollar figure is identical for both. The phase-in is not finished, though. On 1 January 2027 large employers move to 2.5 times the minimum wage, $1,773.00/week ($92,196/year), while small employers stay at 2.25 times, $1,595.70/week; small employers reach 2.5 times in 2028. An employer that reads the matching 2026 figures as the end state will be caught by the next step.
Washington uses the federal primary duty test (not California's 50% time rule), but the salary threshold is so high that it catches many employees who are otherwise exempt under federal and most state rules. A software engineer earning $75k/year is exempt under federal law and California law but is NOT exempt under Washington law.
Washington runs a separate rate for exempt computer professionals: 3.5 times the state minimum wage regardless of employer size, which is $59.96/hour in 2026. That is a higher bar than California's $58.85/hour, so Washington, not California, sets the ceiling for exempt software pay.
State spotlight: New York
New York uses a tiered system. Employees in New York City, Nassau County, Suffolk County, and Westchester County are subject to a $1,275/week threshold ($66,300/year) in 2026. Employees in the rest of New York State face a $1,199.10/week threshold ($62,353/year).
Note: New York does not apply a state-specific threshold to the professional exemption - the federal $684/week threshold applies to professional-exempt employees statewide. This is a significant gotcha for NYC employers: a licensed professional (attorney, doctor, CPA) earning $800/week is professional-exempt under NY law despite being below the $1,275/week executive/administrative threshold.
New York also has a spread-of-hours rule: when a non-exempt employee's workday spans more than 10 hours (including meal breaks), they are entitled to one additional hour of pay at the state minimum wage. This does not affect exempt employees but is a separate compliance requirement for non-exempt staff.
Daily overtime states
Federal law requires only weekly overtime (over 40 hours per workweek). Three states require overtime on a daily basis:
California
California Labor Code § 510- •1.5x for hours 8-12 in a single workday
- •2x for hours beyond 12 in a single workday
- •1.5x for first 8 hours worked on the seventh consecutive day of the workweek
- •2x for hours beyond 8 on the seventh consecutive day
Alaska
Alaska Stat. § 23.10.060- •1.5x for hours beyond 8 in a single workday
- •1.5x for all hours in excess of 40 per week (like federal)
Nevada
Nevada Revised Statutes 608.018- •1.5x for hours beyond 8 in a workday, but ONLY for employees earning less than $18.00/hour (1.5x the state minimum wage)
- •Employees earning $18.00/hour or more are not subject to Nevada's daily overtime requirement
Other state-specific rules
Colorado
Colorado's COMPS Order applies 1.5x overtime for hours over 12 in a single workday (daily overtime), and Colorado has extensive meal and rest break requirements for non-exempt employees. The 2026 exempt salary threshold is $1,111.23/week ($57,784/year), set by the annual PAY CALC Order. Colorado also runs its own highly compensated employee threshold, which is higher than the federal one: $130,014 in 2026 (2.25x the state exempt salary, up from $127,091 in 2025). The weekly salary portion must be paid outright, though the remainder of the annual figure can come from nondiscretionary bonuses, incentives and commissions (CDLE INFO #1, 18 December 2025).
Kentucky
Kentucky requires overtime on the seventh consecutive day of a workweek (1.5x for all hours on day 7), in addition to standard weekly overtime.
New York (spread of hours)
Non-exempt employees whose workday spans more than 10 hours total are entitled to an additional hour of pay at the minimum wage rate. This applies to the total spread of time from start to end of the workday, including meal breaks.
Multi-state compliance for employers
For employers with remote employees, the general rule is that the state law of the employee's primary work location controls. A California employee working for a New York-headquartered employer is entitled to all California overtime protections - daily overtime, the $1,352/week threshold, and the 50%-time duties test.
This creates a practical problem for employers who set uniform salary levels: an employee paid $800/week is exempt under federal law and most state laws, non-exempt in Washington ($1,541.70/week required), non-exempt in California ($1,352/week required), and non-exempt in New York City ($1,275/week required).
Educational content only. State thresholds rechecked September 2026 against each state's labor department publications. Consult an employment attorney for advice on a specific situation.