The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees overtime for all hours in excess of 40 hours in a single workweek. Exemptions from federal overtime and minimum wage requirements are permitted for certain exempt employees who are defined as executive, administrative, and professional (EAP) employees.
Here are some key FLSA requirements you should be aware of for both federal exemptions and state exemptions from overtime for 2025.
The current minimum wage salary amount as set forth by the FLSA for exempt employees is $844 per week (equivalent to a $43,888 annual salary). The minimum total annual compensation requirement for Highly Compensated Employees (HCEs) is $132,964 per year, which includes at least $844 per week paid on a salary or fee basis. Lastly, minimum compensation required for Computer Employees paid on an hourly basis is set at $27.63 per hour.
Updated Minimum Salary Amounts Effective January 1, 2025
The Department of Labor (DOL) has announced that it will raise minimum salary amounts for specific earnings thresholds. Starting January 1, 2025, the minimum wage salary amount for exempt employees is set to raise to $1,128 per week (equivalent to a $58,656 annual salary). The minimum total annual compensation requirement for Highly Compensated Employees (HCEs) will be $151,164 per year, including at least $1,128 per week paid on a salary or fee basis. Lastly, minimum compensation required for Computer Employees paid on an hourly basis will remain at $27.63 per hour.
It is important to note that these earnings thresholds do not apply to certain types of employees, including doctors, lawyers, teachers, and outside sales employees.
DOL updates these salary thresholds every three years using the most current wage data available.
A full table of the FLSA exempt employees earnings thresholds can be found here.
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