Federal exempt wage threshold is the minimal wage an employer should pay an worker to be exempt from extra time pay underneath the Honest Labor Requirements Act (FLSA). The brink is about by the U.S. Division of Labor and is up to date periodically. The present threshold is $684 per week or $35,568 per yr. In 2025, the edge is predicted to extend to $895 per week or $46,570 per yr.
The exempt wage threshold is essential as a result of it helps to make sure that workers are paid pretty for his or her work. It additionally helps to cut back the variety of lawsuits filed by workers who’re misclassified as exempt.