The wage threshold for exempt staff is the minimal wage that an worker should be paid so as to be exempt from time beyond regulation pay necessities. The Honest Labor Requirements Act (FLSA) units the federal minimal wage threshold for exempt staff, however states might also set their very own wage thresholds. In 2023, the federal minimal wage threshold for exempt staff is $684 per week, or $35,568 per 12 months. The wage threshold for exempt staff is adjusted periodically to maintain tempo with inflation.
The wage threshold for exempt staff is vital 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 time beyond regulation pay, so you will need to ensure that they’re paid a wage that’s commensurate with their expertise and obligations. The wage threshold additionally helps to stop employers from misclassifying staff as exempt so as to keep away from paying time beyond regulation wages.