Important: please read
This is general information, not legal advice. It covers federal rules only, unless we say otherwise. State and local law may be different or stricter: check our state employment law hub. Always check the official source before you act. Rules can change. Resources disclaimer
In short
- "Exempt" means exempt from federal minimum wage and overtime. Most exempt employees must pass three tests: salary level, salary basis and duties.
- The federal salary level in 2026 is $684 a week ($35,568 a year).
- The 2024 rule that would have raised it was vacated on November 15, 2024, and removed from the regulations on May 15, 2026.
- Highly compensated employees: $107,432 a year in total pay, including at least $684 a week in salary.
- Job titles and paying a salary do not make someone exempt. Their actual duties do.
The three tests
| Test | Federal rule in 2026 |
|---|---|
| Salary level | At least $684 per week ($35,568 a year). [US DOL] (opens in a new tab) |
| Salary basis | A set amount each pay period that is not cut because of the quality or quantity of the work. [US DOL Fact Sheet 17G] (opens in a new tab) |
| Duties | The employee's primary duty must match one of the exemptions below. [US DOL Fact Sheet 17A] (opens in a new tab) |
What happened to the 2024 salary increase?
On November 15, 2024, a federal court in Texas vacated the Labor Department's 2024 rule, and the Department returned to the 2019 salary level of $684 a week. [US DOL] (opens in a new tab) On May 15, 2026, the Department published a technical amendment removing the 2024 text and restoring the 2019 text in the regulations: $684 a week, $107,432 for highly compensated employees, and $27.63 an hour for computer employees paid by the hour. [Federal Register] (opens in a new tab)
The duties tests, in short
- Executive: primary duty is managing the business or a recognized department; regularly directs two or more full-time employees (or the equivalent); has real input on hiring and firing.
- Administrative: primary duty is office or non-manual work directly related to running the business, using discretion and independent judgment on matters of significance.
- Learned professional: work needing advanced knowledge in science or learning, usually gained through a prolonged course of specialized study.
- Creative professional: work needing invention, imagination, originality or talent in a recognized artistic or creative field.
- Computer employee: systems analyst, programmer, software engineer or similar, paid at least $684 a week or $27.63 an hour.
- Outside sales: primary duty is making sales, and customarily and regularly working away from your place of business. (No salary test.)
Source for all of the above: [US DOL Fact Sheet 17A] (opens in a new tab)
Highly compensated employees
Employees earning at least $107,432 a year in total pay, including at least $684 a week on a salary or fee basis, are exempt if they regularly perform at least one exempt executive, administrative or professional duty. [US DOL Fact Sheet 17A] (opens in a new tab)
Watch out for pay deductions
If you have an actual practice of making improper deductions from an exempt employee's salary, you can lose the exemption. [US DOL Fact Sheet 17G] (opens in a new tab) Check Fact Sheet 17G before docking pay for partial-day absences.
State rules can be higher
Some states set a higher salary level or stricter duties tests. Check your state on our 50-state employment law hub. If an employee is non-exempt, see our overtime guide.
Common mistakes
- Assuming every salaried employee is exempt.
- Using the $1,128-a-week figure from the vacated 2024 rule, or the old $455 figure.
- Relying on job titles like "manager" without checking actual duties.
- Docking an exempt employee's salary for slow work or a slow week.
- Forgetting that your state may set a higher salary level.
Related free tools
Official sources
- US DOL Fact Sheet #17A: Exemptions for executive, administrative, professional, computer and outside sales employees (opens in a new tab)
- US DOL Fact Sheet #17G: Salary basis (opens in a new tab)
- US DOL: Salary levels for the EAP exemptions (opens in a new tab)
- US DOL: Overtime rulemaking FAQs (2024 rule vacated) (opens in a new tab)
- Federal Register, 15 May 2026: 2019 salary levels restored (91 FR 27833) (opens in a new tab)
Checked . If a source has changed since then, the official source wins.
Frequently asked questions
What is the exempt salary level in 2026?
Under federal law, $684 per week ($35,568 a year). The Labor Department restored the 2019 levels in the regulations on May 15, 2026.
What happened to the $1,128-a-week rule?
It was part of the 2024 rule, which a federal court vacated on November 15, 2024. The Labor Department removed it from the regulations on May 15, 2026.
Is everyone on a salary exempt?
No. The employee must also meet the salary basis test and a duties test.
What is the highly compensated employee level?
$107,432 a year in total pay, including at least $684 a week on a salary or fee basis, plus at least one exempt duty.
Do state rules matter?
Yes. Some states set higher salary levels or stricter duties tests. Follow whichever rule is more protective for the employee.
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