What is the federal FLSA overtime salary threshold in 2026?

Following the November 15, 2024 decision by the U.S. District Court for the Eastern District of Texas (State of Texas v. DOL), which vacated the DOL's 2024 Final Rule nationwide, the governing federal standard salary threshold reverted to $684 per week ($35,568 annually) under the 2019 regulations. The Highly Compensated Employee (HCE) threshold reverted to $107,432 per year.

Can states require a higher salary threshold for overtime exemption than federal law?

Yes. Under FLSA Section 18(a), state and local governments are permitted to establish standards that are more protective of workers. When state law requires a higher exempt salary threshold (such as California at $68,640 or New York City at $66,300), employers must comply with the higher state threshold to maintain exempt status.

Can non-discretionary bonuses count toward the FLSA salary threshold?

Under federal FLSA rules, employers may satisfy up to 10% of the standard salary level with non-discretionary bonuses, incentive payments, and commissions, provided they are paid at least annually. If the employee does not earn enough in bonuses to meet the threshold, the employer must make a catch-up payment within one pay period.

Does meeting the salary threshold automatically make an employee exempt from overtime?

No. The FLSA requires meeting all three tests: (1) Salary Basis Test (paid a predetermined, non-dockable salary), (2) Salary Level Test (meeting the statutory dollar threshold), and (3) Duties Test (actual job responsibilities must satisfy the criteria for Executive, Administrative, or Professional roles). Job titles alone never determine exemption.

Department of Labor (DOL) 29 CFR Part 541 & State Law Compliance

FLSA Overtime Exemption Salary Threshold Checker 2026

Evaluate whether an employee qualifies for overtime exemption under current post-vacatur Federal DOL thresholds or higher state rules in California, New York, Washington, and Colorado.

2026 Federal Legal Precedent: On November 15, 2024, the U.S. District Court for the Eastern District of Texas (*State of Texas v. DOL*) vacated the DOL's 2024 Final Rule nationwide. Federal baseline reverts to $684/wk ($35,568/yr). However, multiple states enforce much higher statutory minimums that legally preempt federal standards.

01. Jurisdiction & Classification

Governing Jurisdiction

Federal standard under 29 CFR Part 541 following the Nov 2024 Texas District Court vacatur.

Exemption Category

02. Compensation Details

Pay Frequency

Base Pay Amount ($)

Non-Discretionary Bonuses / Commissions ($/yr) Max 10% credit

Under FLSA § 541.602(a)(3), employers may credit up to 10% of standard salary level via non-discretionary incentives.

Typical Weekly Hours Worked 48 Hours / Wk

40 hrs (No OT) 48 hrs (8 hrs OT) 60 hrs 75 hrs

03. Duties Test Checklist

Actual Job Duties

Check all criteria that represent the employee's genuine, primary daily responsibilities:

Exemption Status Verdict COMPLIANT

Likely EXEMPT from Overtime

The employee meets both the statutory salary threshold and the primary duties test for the selected jurisdiction. The employer is not obligated to pay time-and-a-half overtime for hours worked over 40.

Jurisdiction Threshold

$35,568 / yr

$684.00 per week

Creditable Compensation

$47,500 / yr

$913.46 per week

Salary Surplus / Deficit

+$11,932 / yr

Exceeds threshold by 33.5%

Duties Test Score

3 / 3 Passed

100% duties verified

Annual Salary vs Required Threshold +$11,932 Headroom

Required $35,568

Surplus $11,932

Governing Minimum: $35,568 Employee Total: $47,500

Overtime Compensation Modeling (If Non-Exempt) FLSA 1.5x Time & a Half

If this position is reclassified or determined to be non-exempt, hours worked beyond 40 per week trigger overtime pay:

Regular Rate

$22.84 / hr

Overtime Rate (1.5x)

$34.26 / hr

Annual OT Pay (8 hrs/wk)

$14,252 / yr

HR Compliance Strategy

Maintain written job descriptions and audit logs documenting that primary duties consistently involve management authority or professional discretion. In California or New York, verify that salary satisfies the higher state standard regardless of federal rules.

// JURISDICTIONAL BENCHMARK

2026 Overtime Exemption Salary Threshold Matrix

Comparing current federal and state-mandated minimum salary levels for white-collar exemptions.

Jurisdiction	Weekly Threshold	Annual Threshold	Statutory Basis	HCE Threshold
Federal (FLSA 2019 Rule Post-Vacatur)	$684.00 / wk	$35,568 / yr	29 CFR § 541.600	$107,432 / yr
California	$1,320.00 / wk	$68,640 / yr	2x State Min Wage ($16.50/hr × 2 × 2080)	No HCE Exemption
New York (NYC, Long Island, Westchester)	$1,275.00 / wk	$66,300 / yr	NY Labor Law § 651 / 12 NYCRR 142	No HCE Exemption
New York (Upstate / Rest of State)	$1,192.50 / wk	$62,010 / yr	NY Labor Law § 651 / 12 NYCRR 142	No HCE Exemption
Washington State (50+ Employees)	$1,431.75 / wk	$74,451 / yr	2.25x State Min Wage Multiplier	No HCE Exemption
Colorado	$1,057.69 / wk	$55,000 / yr	COMPS Order #41	$112,500 / yr

// LEGAL GUIDANCE

Frequently Asked Questions

Key answers on federal overtime thresholds, court decisions, and state labor standards.

What happened to the Department of Labor's 2024 Overtime Rule? ↓

In April 2024, the DOL issued a Final Rule that increased the standard salary threshold to $844/week ($43,888/year) on July 1, 2024, and scheduled a second increase to $1,128/week ($58,656/year) for January 1, 2025. However, on November 15, 2024, the U.S. District Court for the Eastern District of Texas in State of Texas v. DOL vacated the entire 2024 rule nationwide, holding that the DOL exceeded its authority under the FLSA. Consequently, the federal standard threshold reverted back to the 2019 level of $684 per week ($35,568 per year).

Can states override the federal FLSA overtime salary threshold? ↓

Yes. Under FLSA Section 18(a), the federal FLSA establishes a wage floor, not a ceiling. States are fully empowered to enact wage and hour laws that provide greater protections for employees. If an employer has workers in California ($68,640/year threshold), New York ($62,010 - $66,300/year), or Washington ($74,451/year), the employer must pay the higher state salary threshold to maintain exempt status. Paying the federal $35,568 threshold in California results in misclassification and severe overtime liabilities.

What are the three tests required for an FLSA exemption? ↓

To be properly classified as exempt under the EAP regulations, an employee must satisfy all three criteria:

Salary Basis Test: The employee must be paid a predetermined, fixed salary that cannot be docked based on the quality or quantity of work performed.
Salary Level Test: The predetermined salary must meet or exceed the governing federal ($684/wk) or state threshold.
Duties Test: The employee's actual primary daily responsibilities must meet the specific legal definitions for Executive, Administrative, or Professional positions.

How does the Computer Employee Exemption work? ↓

Under FLSA Section 13(a)(17), computer systems analysts, software engineers, and programmers can be exempt if paid on a salary basis of at least $684/week OR if paid an hourly rate of at least $27.63 per hour under federal law. However, California requires computer software professionals to be paid at least $55.58 per hour ($115,763 annually) to maintain state exemption.

Can an employer reduce an exempt employee's salary if they work fewer hours? ↓

Generally, no. Under 29 CFR § 541.602, an exempt employee must receive their full predetermined salary for any workweek in which they perform any work, regardless of how many hours are worked. Deductions for partial-day absences or variations in workload violate the "salary basis test" and can destroy the exemption across the entire employee class, subjecting the employer to back-overtime claims.