Exempt salary thresholds for 2027: federal and state levels
The federal exempt salary level is $684 a week as of October 22, 2026, with no change scheduled. California, Washington and Maine raise theirs January 1, 2027.
Under federal law, most exempt employees must earn at least $684 a week ($35,568 a year). The Department of Labor lists no scheduled change. That level has applied since courts vacated a 2024 rule. From January 1, 2027, California requires $72,384 a year, and Maine $905.79 a week. Washington requires $1,773.00 a week for employers with 51 or more employees. Salary is one test; the job's duties must also qualify.
- The federal levels are $684 a week and $107,432 a year for highly compensated employees. The Department of Labor's page lists no future update date.
- Salary is one test: California and Maine both say the job's duties must also qualify, whatever the pay.
- Check every exempt salary in California, Washington and Maine before January 1, 2027, and in any other state with its own level.
The federal salary level for exempt employees in 2027
The Fair Labor Standards Act (FLSA) exempts some executive, administrative and professional employees from its minimum wage and overtime rules. Most exempt employees must pass a salary test and a duties test. The salary test sets a minimum amount, paid as a salary rather than by the hour.[1][2]
| Threshold | Amount |
|---|---|
| Standard salary level | $684 a week ($35,568 a year) |
| Highly compensated employees, total annual pay | $107,432, including at least $684 a week on a salary or fee basis |
| Computer employees paid by the hour | $27.63 an hour |
The Department of Labor says these thresholds do not apply to some jobs, including doctors, lawyers, teachers and outside sales employees.[1]
Why the federal salary level went back to $684 a week
A 2024 rule raised the federal levels and provided for automatic updates every 3 years. On November 15, 2024, the US District Court for the Eastern District of Texas vacated it. The US District Court for the Northern District of Texas did the same on December 30, 2024.[7][3]
Since then the department has enforced the regulations in place on June 30, 2024. On May 15, 2026, it published a technical amendment in the Federal Register that removed the vacated text and republished the 2019 regulations.[7][2]
Those regulations set the $684 weekly salary and the $107,432 threshold for highly compensated employees. The department's salary-levels page lists no future update date. The Federal Register notice says the amendment does not rule out a future rule to update the levels.[2][1][7]
State exempt salary thresholds that rise on January 1, 2027
California, Washington and Maine tie their thresholds to the state minimum wage, so they rise when it does. Each yearly or weekly figure is the agency's, except California's weekly figure, which is the yearly figure divided by 52. Other states set their own levels; this table covers only the 3 whose 2027 levels could be confirmed on their own agency sites.[4][5][6]
| State | Weekly | Yearly | Notes |
|---|---|---|---|
| California | $1,392 (the yearly figure divided by 52) | $72,384 | Twice the $17.40 minimum wage over a 2,080-hour year |
| Washington, 51 or more employees | $1,773.00 | $92,196.00 | 2.5 times the $17.73 minimum wage, up from 2.25 times |
| Washington, 50 or fewer employees | $1,595.70 | $82,976.40 | 2.25 times the minimum wage |
| Maine | $905.79 | $47,101.08 | Must exceed 3,000 times the state minimum wage, or the federal level if higher |
Washington also lets employers pay exempt computer professionals by the hour. In 2027 that hourly rate is $62.06, which is 3.5 times the minimum wage, whatever the employer's size.[5]
Paying the salary threshold does not make a job exempt
California's Labor Commissioner says employees must also satisfy the duties and other requirements of the specific exemption. The Maine Department of Labor puts it the other way: a worker can earn more than the threshold and still be eligible for overtime.[4][6]
- List every exempt employee by the state where they work.
- Compare each salary with the higher of the federal and state levels for January 1, 2027.
- In Washington, count your employees to know which level applies.
- For each salary below the level, raise it to the threshold, or keep the salary and pay overtime, or move the job to hourly pay.
- Put the new salary or the hourly rate in writing; an offer letter template shows the terms to state.
Nonexempt workers must get at least one and one-half times their regular rate after 40 hours in a workweek. If an employee was wrongly treated as exempt, the Department of Labor or the employee can recover unpaid overtime plus equal damages.[8]
The usual time limit is 2 years, or 3 years for a willful violation. Employers who willfully or repeatedly violate the overtime rules also face civil money penalties.[8]
For hourly pay, compare the state minimum wage increases in January 2027.
The salary rules apply to employees. A worker you pay as a contractor is a separate question, covered in independent contractor vs employee.[1]
Sources
Scope: Covers the federal salary levels under the Fair Labor Standards Act as of October 23, 2026, and the 2027 thresholds of the 3 states whose levels could be confirmed on their own agency sites: California, Washington and Maine. Other states set their own levels. Leaves out the duties tests in detail, public employers and union contracts. For a specific job, contact the US Department of Labor's Wage and Hour Division or your state labor agency.
- Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSAUS Department of Labor, Wage and Hour Division · Accessed October 23, 2026
- US Department of Labor announces technical amendment restoring regulations on exemptions for executive, administrative, professional employeesUS Department of Labor · Accessed October 23, 2026
- Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer EmployeesFederal Register · Accessed October 23, 2026
- ICYMI: California's minimum wage set to increase to $17.40 per hour on January 1, 2027California Department of Industrial Relations · Accessed October 23, 2026
- Washington's minimum wage rises to $17.73 an hour in 2027Washington State Department of Labor & Industries · Accessed October 23, 2026
- Maine's Minimum Wage to Increase to $15.70 Per Hour in 2027Maine Department of Labor · Accessed October 23, 2026
- Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court JudgmentsFederal Register (US Department of Labor, Wage and Hour Division) · Accessed October 23, 2026
- Handy Reference Guide to the Fair Labor Standards ActUS Department of Labor, Wage and Hour Division · Accessed October 23, 2026
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