The wage threshold for exempt staff is the minimal wage that an worker have to be paid in an effort 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 might also 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 vital 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 you will need to ensure that they’re paid a wage that’s commensurate with their expertise and duties. The wage threshold additionally helps to forestall employers from misclassifying staff as exempt in an effort to keep away from paying additional time wages.