Minimum Salary Requirements for Overtime Exemption in 2025

The federal Fair Labor Standards Act (FLSA) requires that employers pay non-exempt employees overtime for all hours worked in excess of 40 hours in a workweek. Some states require overtime in additional circumstances. However, there are federal and state exemptions from these requirements for employees who meet certain salary and duties tests.

Federal Exemptions From Overtime

The FLSA allows for exemptions from the federal overtime (and minimum wage) requirements for certain employees who work in administrative, professional and executive jobs.

To be considered "exempt," these employees must generally satisfy three tests.

Be paid a salary, meaning they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed.

Be paid at least a specified weekly salary level (the salary-level-test); and

Primarily perform executive, administrative or professional duties, as provided in the U.S. Department of Labor's regulations

California

To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week.

California's minimum wage will increase to $16.50 per hour on January 1, 2025, after voters in California rejected a ballot initiative that would have raised the minimum wage further.
As such, the minimum weekly salary required for the state’s administrative, professional and executive exemptions from overtime will increase to $1,320 per week on January 1, 2025.
Computer software employees may be paid on an hourly or a salary basis to qualify for exemption from California's overtime requirements. Beginning January 1, 2025, computer software employees must earn at least the following to be exempt from overtime in the state:

$56.97 per hour (for all hours worked); or
A monthly salary of $9,888.13; and
An annual salary of $118,657.43

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