Ace the Certified Payroll Pro Test 2026 – Payroll Masters, Your Time to Shine!

The salary threshold required for white-collar exemptions under the Fair Labor Standards Act (FLSA) is set at $455 per week, which translates to approximately $23,660 annually. This threshold applies to employees who may qualify for exemptions from overtime pay requirements based on their job duties and responsibilities, specifically in executive, administrative, and professional roles.

The importance of this threshold lies in its function as a dividing line—employees earning less than $455 per week are generally entitled to minimum wage and overtime pay, while those earning above that amount may not be, provided they also meet the duties test for their respective exemption category. The establishment of this wage floor is crucial in protecting lower-wage employees from being classified as exempt and losing out on fair pay for overtime work.

Understanding this threshold is key for employers when classifying employees and ensuring compliance with labor laws, as improper classification can lead to significant legal and financial repercussions.