Federal exempt wage threshold is the minimal wage an employer should pay an worker to be exempt from extra time pay below the Honest Labor Requirements Act (FLSA). The brink is ready by the U.S. Division of Labor and is up to date periodically. The present threshold is $684 per week or $35,568 per 12 months. In 2025, the brink is anticipated to extend to $895 per week or $46,570 per 12 months.
The exempt wage threshold is vital as a result of it helps to make sure that workers are paid pretty for his or her work. It additionally helps to scale back the variety of lawsuits filed by workers who’re misclassified as exempt.