The wage threshold for exempt staff is the minimal wage that an worker should be paid in an effort to be exempt from extra time pay necessities. The Truthful Labor Requirements Act (FLSA) units the federal minimal wage threshold for exempt staff, however states may additionally 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 necessary as a result of it helps to make sure that staff are paid pretty for his or her work. Exempt staff should not eligible for extra time pay, so you will need to ensure that they’re paid a wage that’s commensurate with their expertise and tasks. The wage threshold additionally helps to forestall employers from misclassifying staff as exempt in an effort to keep away from paying extra time wages.