FLSA Salary Threshold 2026: Who Qualifies for Overtime Now?

What Is the FLSA Salary Threshold in 2026?

As of 2026, the federal Fair Labor Standards Act (FLSA) salary threshold for the executive, administrative, and professional (EAP) "white-collar" exemptions is $684 per week — equal to $35,568 per year.

Salaried employees earning less than $684/week must be paid overtime (time and a half) for any hours over 40 in a workweek, regardless of job title.

Why the Number Reverted

In April 2024 the U.S. Department of Labor raised the threshold to $844/week (and was scheduled to hit $1,128/week / $58,656/year on Jan 1, 2025). On November 15, 2024, the U.S. District Court for the Eastern District of Texas (*Texas v. U.S. Department of Labor*) vacated the entire 2024 rule nationwide. The threshold automatically reverted to the 2019 level of $684/week.

The DOL did not appeal the ruling under the incoming administration, so the 2019 rule is the controlling federal standard for 2026.

The Three-Part FLSA Exemption Test

To classify a salaried employee as exempt from overtime in 2026, the employer must satisfy all three tests:

• . Salary basis test — paid a fixed predetermined salary not subject to reduction based on quality/quantity of work
• . Salary level test — at least $684/week ($35,568/year)
• . Duties test — primary duties must meet the executive, administrative, professional, computer, or outside-sales criteria in 29 CFR Part 541

Miss any one and the worker is non-exempt and entitled to overtime.

Highly Compensated Employee (HCE) Threshold

The federal HCE shortcut also reverted: an employee earning $107,432/year or more (with at least $684/week paid on a salary basis) qualifies for exemption under a relaxed duties test. The vacated 2024 rule had pushed this to $151,164 — that increase is no longer in effect.

States with Higher Salary Thresholds

Several states impose stricter thresholds. In 2026 they are:

• California — $1,320.00/week ($68,640/year) for employers of any size
• New York — $1,237.50/week ($64,350/year) in NYC, Nassau, Suffolk, Westchester; $1,161.65/week ($60,405.80/year) elsewhere
• Washington — $1,499.40/week ($77,968.80/year) for employers with 51+ employees; $1,332.80/week for 1–50 employees
• Colorado — $1,086.25/week ($56,485/year)
• Maine — $845.21/week ($43,951/year)
• Alaska — $952.80/week ($49,545/year)

Workers in those states use the higher of the federal or state threshold. Use our state overtime calculators to check your local rule.

Worked Example: Salaried Manager in Texas

Maria earns $40,000/year as a "store manager" and works 50 hours/week.

• Salary level test: $40,000 ÷ 52 = $769.23/week ✓ above $684
• Duties test: she stocks shelves, runs the register, and rarely supervises 2+ employees — likely fails the executive duties test
• Result: non-exempt → entitled to overtime on 10 hours/week

Her regular rate = $769.23 ÷ 40 = $19.23/hour. Weekly overtime owed = 10 × $19.23 × 0.5 = $96.15/week (~$5,000/year in back pay).

Use the How to Calculate Overtime Pay guide for the full formula.

Common Misclassification Red Flags

The DOL Wage and Hour Division recovered $273 million in back wages in FY2024 — most from misclassification. Watch for:

• Assistant managers who spend >50% of time on non-exempt tasks
• "Salaried" inside-sales reps without true administrative discretion
• IT support staff labeled "computer professionals" without the $27.63/hr or $684/week threshold
• Junior accountants and paralegals who don't exercise independent judgment

What If You're Misclassified?

You can file a confidential complaint with the U.S. DOL Wage and Hour Division within 2 years (3 years if willful). Many states give you longer to file in state court. Liquidated (double) damages and attorney's fees are recoverable.

FAQ

Will the salary threshold go up in 2026?

There is no scheduled federal increase. The DOL would have to issue a new rule and survive court challenge — neither expected in 2026.

Is the threshold prorated for part-time employees?

No. The $684/week is a fixed minimum regardless of hours scheduled. Part-time salaried workers who fall below it are non-exempt.

Do bonuses count toward the $35,568?

Up to 10% of the threshold can be met with nondiscretionary bonuses and incentive payments paid at least annually.

Does the 2026 No Tax on Overtime deduction apply to reclassified employees?

Yes — once reclassified as non-exempt, your qualifying overtime premium (the half-time portion above your regular rate) is deductible up to $12,500 ($25,000 joint). Read the No Tax on Overtime Guide.

Run your own numbers

If you are near the threshold, the FLSA overtime calculator shows what the federal 40-hour rule would pay you as a non-exempt employee, and the full index of overtime calculators covers state and industry variants.