The wage threshold for exempt staff is the minimal wage that an worker have to be paid as a way to be exempt from additional time pay necessities. The Honest Labor Requirements Act (FLSA) units the federal minimal wage threshold for exempt staff, however states may set their very own wage thresholds. In 2023, the federal minimal wage threshold for exempt staff is $684 per week, or $35,568 per yr. The wage threshold for exempt staff is adjusted periodically to maintain tempo with inflation.
The wage threshold for exempt staff is essential as a result of it helps to make sure that staff are paid pretty for his or her work. Exempt staff usually are not eligible for additional time pay, so it is very important guarantee that they’re paid a wage that’s commensurate with their expertise and tasks. The wage threshold additionally helps to forestall employers from misclassifying staff as exempt as a way to keep away from paying additional time wages.