Overtime Exemption Threshold (2026)
Whether you are owed overtime hinges on one question: are you exempt or nonexempt? The FLSA "white-collar" exemptions — executive, administrative, professional — require meeting both a duties test and a salary threshold. In 2026 the salary threshold remains $35,568 per year after a proposed increase to $58,656 was vacated by a federal court. This guide explains the test, the threshold, and how to check your own status.
The Two-Part Exemption Test
To be exempt, an employee must (1) be paid on a salary basis above the threshold and (2) primarily perform exempt duties (managing a unit, exercising discretion on significant matters, or advanced specialized work). Failing either test makes you nonexempt and owed overtime. Job titles alone do not decide; actual duties do. The overtime guide covers the OT calculation for nonexempt staff.
The $35,568 Salary Threshold
The standard weekly salary floor is $684/week, i.e. $35,568/year, carried over from the 2020 rule. Workers paid less than that are nonexempt regardless of title. A 2024 rule that would have raised it to $58,656 (and auto-indexed it) was struck down by a federal court in late 2024, so the older threshold remains in force for 2026. The tax guide is unrelated but useful for the higher earnings.
Highly Compensated Employees
A separate "highly compensated employee" (HCE) exemption applies at a much higher total-compensation level (over $107,432 under the pre-2024 rule, with a portion as salary). HCEs need only perform one exempt duty. The vacated 2024 rule would have raised this too; the older figure stands. This affects senior individual contributors more than managers.
Duties Test: Executive
The executive exemption requires managing the enterprise or a recognized unit, directing two or more full-time employees, and having hiring/firing input. A team lead who mostly does their own production work but "manages" on paper may not qualify. The comparison guide notes how misclassification hides unpaid overtime.
Duties Test: Administrative
Administrative exemption requires office or non-manual work directly related to management or business operations, with discretion on matters of significance. Routine clerical or data-entry work, even if titled "administrator," usually fails. This is the most litigated test, because many "administrative" roles are actually nonexempt.
Duties Test: Professional
The professional exemption covers work requiring advanced knowledge in a field of science or learning (typically a degree) or recognized artistic endeavor. Learned professionals (engineers, accountants, nurses) often qualify; skilled trades may qualify under the "creative" prong. The commission guide touches on exempt outside sales roles.
State Thresholds Can Be Higher
Some states set their own, higher salary thresholds for the exemptions. California, for example, ties its exempt salary to a multiple of the state minimum wage, far above $35,568. If your state threshold exceeds the federal one, the higher applies. The California guide details its figure; always check your state.
How to Check Your Own Status
List your actual weekly duties, compute your real hourly rate from salary divided by hours worked, and compare to the threshold. If you are below $35,568 or your duties are mostly nonexempt, you likely qualify for overtime. The Overtime Pay Calculator estimates what you may be owed. If misclassified, raise it with payroll or your state labor agency.
Worked: Are You Exempt?
A "manager" paid $42,000 who mostly does their own production work, directs no direct reports, and has no hire/fire input is likely nonexempt despite the title — and owed overtime. Compute the effective rate: $42,000 / (50 x 52) = $16.15/hour; at 1.5x OT that is $24.23 for the extra 10 hours. Misclassification can cost thousands a year. The Overtime Pay Calculator estimates what you may be owed.
The Duties Test, Concretely
Executive: manages a unit, directs two or more full-timers, has hire/fire input. Administrative: office work related to management or business operations with discretion on significant matters. Professional: advanced knowledge requiring a degree, or recognized artistic work. If your daily work fails these, the salary threshold does not make you exempt. The comparison guide notes how titles can mislead.
State Thresholds Above Federal
California ties its exempt salary to the state minimum wage (a multiple of it), far above $35,568; a worker exempt federally may be nonexempt in California and owed OT. Always check your state's rule — the higher bar applies. The California guide and other state guides note local figures so you are not underpaid.
What to Do If Misclassified
Document your actual duties and hours, compute owed OT, and raise it with payroll in writing. If unresolved, file with your state labor agency (or the federal DOL). Track your own hours; payroll errors favor the employer when unchallenged. The overtime guide explains the regular-rate math behind the claim.
The Vacated 2024 Rule, Explained
A 2024 federal rule would have raised the exemption salary threshold to $58,656 and auto-indexed it, but a federal court vacated it in late 2024, leaving the 2020 threshold of $35,568 in force for 2026. Employers that planned around the higher figure had to revert. The tax guide is separate, but the labor-law uncertainty matters for your paycheck.
The HCE Exemption Path
The HCE exemption applies above a much higher total-compensation level (over $107,432 under the standing rule) and needs only one exempt duty. Senior individual contributors may qualify even without managing people. The comparison guide notes how title and duties interact; the threshold, not the label, decides.
When Your State Sets a Higher Floor
California and a few states tie the exempt salary to the state minimum wage, far above $35,568; a worker exempt federally may be nonexempt there and owed OT. Always check your state's rule — the higher bar applies. The California guide gives the figure; the state comparison maps tipped and OT rules.
Document and Assert
If you are below the threshold or do nonexempt work, track hours and compute owed OT with the Overtime Pay Calculator, then raise it with payroll or your state agency. Misclassification is common and costly; the overtime guide explains the regular-rate math behind any claim you file.
The $35,568 Floor, Plainly
To be exempt from overtime in 2026, you generally need to be paid a salary of at least $35,568 per year AND do exempt duties (executive, administrative, or professional). Salary alone is not enough; the duties test decides. The overtime guide explains the pay math; the Overtime Calculator prices what you are owed if misclassified.
The Vacated 2024 Rule
A 2024 federal rule would have raised the threshold to $58,656 and auto-indexed it, but a court vacated it in late 2024, leaving the 2020 level in force. Employers that planned around the higher figure had to revert. The tax guide is separate, but the labor-law uncertainty matters for your paycheck and any promised raise tied to the old rule.
States Above the Federal Floor
California and a few states tie the exempt salary to the state minimum wage, far above $35,568; a worker exempt federally may be nonexempt there and owed OT. Always check your state's rule — the higher bar applies. The California guide gives the figure; the state comparison maps tipped and OT rules.
Document and Assert Your Rights
If you are below the threshold or do nonexempt work, track hours and compute owed OT with the Overtime Pay Calculator, then raise it with payroll or your state agency. Misclassification is common and costly; the paystub guide helps you read the lines, and accurate records win disputes when you file a claim.
A Threshold Worked Example
A worker paid $34,000 salary doing mostly clerical admin tasks is below the $35,568 floor and is nonexempt — owed 1.5x for hours over 40, even with a "salary" title. A worker at $40,000 with genuine administrative exemption duties is exempt. The title on the offer letter decides nothing; the salary and the duties test do. The Overtime Calculator prices what the first worker is owed; the overtime guide shows the regular-rate math behind the payment.
Your Status Checklist
Confirm three things: is your pay at or above $35,568? Do your actual daily duties match an exempt category (executive, administrative, professional)? Does your state set a higher floor? If any answer is no, you are likely nonexempt. The state wage comparison flags higher-state floors; the comparison guide folds OT into offer math so misclassification does not quietly cost you thousands a year.
State Floors Above Federal
California ties the exempt salary to the state minimum wage, far above $35,568, so a worker exempt federally may be nonexempt there and owed OT on long weeks. The California guide gives the figure; a few other states follow suit or are considering it. Always check your state's rule — the higher bar applies — and the tax guide is separate but useful when OT changes your year-end bill.
If You Are Misclassified
Track your hours and compute owed OT with the Overtime Pay Calculator, then raise it with payroll or your state labor agency; many states have a three-year lookback. The paystub guide helps you read the lines for evidence; accurate records win disputes. Misclassification is common and costly, so asserting the right is routine, not confrontational, when done in writing with the agency as backstop.
Myths About the Exemption
Myths: that a "salary" title means exempt (the salary floor and duties test decide); that the 2024 raise to $58,656 is in force (a court vacated it, $35,568 stands for 2026); and that federal exempt status applies everywhere (some states set a far higher floor). The overtime guide prices what you are owed; the California guide gives the higher state bar, so the threshold — not the job label — governs your OT rights wherever you actually work.
Next Steps and the Calculators
If you suspect misclassification, track hours and compute owed OT with the Overtime Pay Calculator, then raise it with payroll or your state agency. The paystub guide helps you read the evidence; the tax guide is separate but useful when OT changes your year-end bill. Accurate records win disputes, and a written claim starts any lookback your state allows for underpaid overtime.
2026 at a Glance
For 2026, the standing federal exempt salary floor is $35,568, with the highly compensated employee level above $107,432 and several states setting a much higher bar tied to the state minimum wage. The 2024 proposal to raise the floor to $58,656 and index it was vacated, so plan around $35,568. Salary alone never grants exemption — the duties test decides — and misclassification is the most common, most costly overtime error for salaried staff who work long weeks.
Key Takeaways
In 2026 the FLSA white-collar exemption salary threshold is still $35,568/year after the proposed $58,656 rise was vacated. Exemption also requires passing the duties test (executive/administrative/professional), and some states set higher bars. If you are below the threshold or do nonexempt work, you are owed overtime. Verify with the Overtime Pay Calculator and the overtime guide.
Frequently Asked Questions
Related Reading
Figures are 2026 estimates for guidance only. See the 50 State Wage Guides for local detail.