To classify a salaried employee as exempt from overtime pay under the federal Fair Labor Standards Act, an employer has to clear a minimum salary threshold — and in 2026, that federal number is lower than what several states actually require. Whichever threshold is higher, federal or state, is the one that legally applies.
The federal threshold stayed put in 2026
The federal overtime-exempt salary threshold remains $684 a week, or $35,568 a year, in 2026 — the same figure set in 2019. A proposed increase from the Department of Labor was blocked by federal courts, and following rule changes that took effect May 15, 2026, the 2019 level continues to govern the executive, administrative, and professional exemptions. A separate, higher threshold applies to "highly compensated employees": $107,432 in total annual compensation, combined with a salary of at least $684 a week.
Six states require more than the federal minimum
At least six states set their own exempt-salary threshold above the federal floor: California, Connecticut, New York, Washington, Colorado, and Alaska. Washington's is the highest in the country — the state ties its threshold to 2.25 times the state minimum wage, putting it at roughly $80,168 a year in 2026. California requires $70,304 for all employers regardless of size. New York varies by region: $64,350 a year in New York City and the Nassau, Suffolk, and Westchester counties, and $60,405.80 elsewhere in the state.
Why this matters for a salaried employee
An employer has to satisfy whichever threshold is higher — federal or state — for an employee to be legally classified exempt from overtime pay. A salaried employee paid just above the $35,568 federal minimum but working in California, Washington, or New York could still be legally entitled to overtime pay if their salary falls under that state's higher number, regardless of their job title or how the position is otherwise structured.
Check where your salary lands
Our salary calculator converts between annual, monthly, and hourly pay so you can see exactly where a given salary falls relative to these thresholds.
Sources: federal threshold and highly-compensated-employee figure via Homebase; state-by-state threshold figures via Symmetry Software and Nextep.
