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