As of January 1, 2025, to be considered an exempt employee in the U.S., a worker must be paid a minimum salary of $684 per week, or $35,568 per year. Exempt workers in California, meanwhile, must be paid a salary that is at least twice the state’s minimum wage. The 2025 California minimum wage is $16.50 per hour.

This means that state law in California provides a higher salary basis for exempt workers than what is provided under federal law.

What is the minimum salary across the country?

The federal Fair Labor Standards Act (FLSA) requires all exempt employees be paid at least $684 per week.[1] This is equal to a $35,568 annual salary.

This does not apply to non-federal employees in the following U.S. territories:

• Northern Mariana Islands,
• Guam,
• Puerto Rico,
• S. Virgin Islands, or
• American Samoa.

In these territories, the minimum salary is now $455 per week, except for American Samoa, where it is $380 per week.[2]

The new amounts are the result of a recent change in federal labor law. The U.S. Department of Labor (DOL) announced a final rule on September 24, 2019. The new rule changed the federal regulations for minimum salary requirements for exempt employees. This rule increased the minimums for an employee’s salary from $455 per week – or $23,660 in annual compensation – to the current minimum.[3] It became effective January 1, 2020.

How does the California minimum wage affect my salary?

In California, the minimum salary for exempt employees is based on the applicable...

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