Federal Salary Threshold 2026: The 4 Weekly Overtime Exemption Rule
Quick answer: The federal standard salary level is $684 per week, equivalent to $35,568 per year. The highly compensated employee threshold is $107,432, including at least $684 per week on a salary or fee basis.
Why the threshold was in the news
On May 14, 2026, the U.S. Department of Labor announced a technical amendment removing regulatory language from the judicially vacated 2024 overtime rule and republishing the operative 2019 standards.
The restored regulations require most executive, administrative, and professional employees to receive at least $684 per week to satisfy the federal salary-level test.
The three-part exemption analysis
- Salary level: At least $684 per week for most standard exemptions.
- Salary basis: A predetermined salary that is not reduced because of variations in work quality or quantity, subject to limited exceptions.
- Duties test: Actual primary duties must satisfy the executive, administrative, or professional exemption.
Salary alone is not enough
An employee earning $80,000 a year is not automatically exempt. Job titles such as manager, director, administrator, analyst, or coordinator do not determine legal status.
A manager who performs mostly routine production or customer-service work and lacks meaningful management authority may remain overtime eligible.
Highly compensated employees
The highly compensated employee test can apply to office or nonmanual employees receiving at least $107,432 in total annual compensation, including at least $684 per week on a salary or fee basis, when they customarily perform at least one exempt duty.
Manual laborers do not become exempt under this test simply because they earn more than the threshold.
Can bonuses count?
Federal rules permit qualifying nondiscretionary bonuses, incentives, and commissions to satisfy up to 10% of the standard salary level under specific conditions. The employer generally must pay at least 90% as guaranteed salary each pay period.
State thresholds can be higher
The $684 amount is only the federal floor. California, Washington, New York, Maine, and other jurisdictions impose higher salary requirements or more protective duties tests.
An employer covered by both federal and state law generally must comply with the more protective applicable standard.
Example
An employee earns $50,000 per year and is called an operations manager. The employee performs routine production work, has no authority over staff, and does not exercise meaningful discretion.
The salary exceeds $684 per week, but the employee may still be nonexempt because the duties test is not satisfied.
Employer checklist
- Confirm federal and state salary thresholds.
- Review actual duties rather than titles.
- Audit salary deductions.
- Separate manual work from qualifying exempt functions.
- Review employees whose duties changed.
- Document the basis for each exemption.
Frequently Asked Questions
What is the federal exempt salary minimum in 2026?
$684 per week, equivalent to $35,568 per year.
What is the highly compensated threshold?
$107,432 in total annual compensation, including at least $684 per week on a salary or fee basis.
Does a manager title create an exemption?
No. Actual duties, salary basis, and salary level must satisfy the law.
Can bonuses count toward the threshold?
Qualifying nondiscretionary payments may satisfy up to 10% under federal rules.
Can a state require more?
Yes. Employers must check the law where the employee works.
Official Sources
- U.S. Department of Labor — May 14, 2026 Announcement
- U.S. Department of Labor — Earnings Thresholds
- U.S. Department of Labor — Fact Sheet 17G
- U.S. Department of Labor — Fact Sheet 17H
This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by location, occupation, employer size, and employee duties.
This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.