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 | 2.25x state min wage ($17.25/hr) | 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 |
| Colorado | $1,086.25 | $56,485 | CO DLSS COMPS Order #39 (2026) | Jan 2026 |
| Alaska | $878.40 | $45,677 | 2x state min wage ($10.98/hr) x 40 hrs | Jan 2026 |
| Maine | $845.21 | $43,951 | 3,000x state min hourly ($14.65/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. All thresholds verified April 2026. Colorado threshold is the 2026 COMPS Order #39 projection; verify at dlss.colostate.gov for final figure.
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/year). This is calculated as 2.25 times the state minimum wage ($17.25/hour). Both large employers (251+ employees) and small employers (1-50 employees) are subject to the same threshold in 2026 - the multi-year phase-in for small employers has concluded.
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.
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). Colorado also has extensive meal and rest break requirements for non-exempt employees. The 2026 exempt salary threshold is approximately $1,086.25/week (verify the final COMPS Order #39 figure at dlss.colostate.gov).
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 are verified as of April 2026 against each state's labor department publications. Consult an employment attorney for advice on a specific situation. Thresholds verified April 2026.