Exempt Status Salary Threshold Updates for 2025
Effective: 2025
The new year approaches, and it’s time for the annual update to the exempt salary threshold. As a reminder, the exempt salary threshold refers to the minimum salary an employee can be paid and qualify for exemption from overtime. If an employee makes an amount lower than that threshold, they cannot be classified as exempt, regardless if they meet all the other requirements.
While most states follow the threshold set by the federal government, some states have a higher threshold, which employers in those states have to comply with. In addition, recently a law was passed to increase the federal threshold, starting with an increase in July 2024, which was supposed to increase again in January 2025.
However, a federal judge has blocked this ruling, which means the threshold was brought back down to its pre-ruling number, which is $35,568 per year. That means even the increase that already took place in July has been reverted.
To see a full list of 2025 changes by state, you can consult our chart HERE :
Get day-to-day updates on Exempt Status Salary Threshold Updates for 2025 visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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