The federal Fair Labor Standards Act (FLSA) requires that employers pay non-exempt employees overtime for all hours worked in excess of 40 hours in a workweek. Some states require overtime in additional circumstances. However, there are federal and state exemptions from these requirements for employees who meet certain salary and duties tests. Here are some key points to know for both federal and state exemptions from overtime for 2026.
Federal exemptions from overtime
The FLSA allows for exemptions from the federal overtime (and minimum wage) requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). To be considered "exempt," these employees must generally satisfy three tests. Currently, to fall within the executive, administrative and professional (EAP) employee exemptions, an employee generally must:
- Receive a salary, meaning they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed (the salary-basis test);
- Receive at least a specified weekly salary level (the salary-level test); and
- Primarily perform executive, administrative or professional duties, as provided in the U.S. Department of Labor's regulations (the duties test).
Federal minimum salary requirement remains $684 per week
The minimum salary required for the EAP exemptions from overtime under federal law is $684 per week in 2026, the same as it was in 2025.
However, the U.S. Department of Labor has indicated it plans to review the rule for possible changes, which would be sought through the regulatory process. As such, employers should monitor the situation for potential developments.
Some states are increasing minimum salary requirements
Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Generally, if a state law is more protective to the employee, then state law should be followed. Consult with counsel if you have specific questions about how to classify your employees.
Five states will have minimum salary requirements for overtime exemption that will increase on January 1, 2026 and will exceed the federal level of $684 per week. These changes are summarized below.
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Note: Some states will increase their minimum salary requirements later in the year. For example, Alaska’s minimum salary requirements for overtime exemption will likely increase on July 1, 2026. The following list covers January 1, 2026 changes only. |
California
To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week.
California's minimum wage will increase to $16.90 per hour on January 1, 2026.
Therefore, the minimum weekly salary required for the state’s administrative, professional and executive exemptions from overtime will increase to $1,352 per week on January 1, 2026.
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Note: The state has adopted industry-specific minimum wage requirements for certain health care employers and fast-food restaurants that are part of a large chain. For covered employers in these two industries, the minimum salary required for exemption from overtime generally will be double the applicable industry-specific minimum wage (based on a 40-hour week). For example, covered fast-food restaurants that are part of a large chain will need to pay a salary of at least $1,600 per week (based on a $20 minimum wage) to qualify for overtime exemption. This is the same minimum salary required in 2025. More information on the minimum wage for the healthcare industry can be found here. |
Computer software employees may be paid on an hourly or a salary basis to qualify for exemption from California's overtime requirements. Explore more information on the minimum pay requirements for this exemption in 2026.
Colorado
In Colorado, employees must meet certain salary and duties tests to qualify for overtime exemption. As a result of the Colorado Overtime & Minimum Pay Standards Order, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law will increase to $1,111.23 per week on January 1, 2026.
Under the state’s exemption for highly technical computer employees, the employee may be paid by salary (at least $1,111.23 per week in 2026) or by the hour. The minimum hourly rate for 2026 is $34.85 for these employees.
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Note: In Colorado, an exempt employee’s salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. This is true in certain other states as well, some of which will have a new minimum wage in 2026. Employers may want to consult legal counsel about how this rule may impact them. |
Maine
To be classified as exempt from overtime under state law, administrative, professional and executive employees must satisfy certain salary and duties tests and receive a salary that exceeds 3,000 times the state minimum wage divided by 52. Due to an increase in the state's minimum wage, the minimum salary required for the administrative, professional and executive exemptions from overtime under state law will increase to $871.16 per week on January 1, 2026.
New York
To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests.
For these two exemptions, the state typically has set the minimum salary requirement at/or about 75 times the state minimum wage. The state’s minimum wage will increase on January 1, 2026.
As a result of the new minimum wage, the state is increasing the minimum salary requirement for the executive and administrative exemptions to $1,275.00 per week on January 1, 2026 in New York City and Nassau, Suffolk, and Westchester counties. In areas other than New York City and Nassau, Suffolk, and Westchester counties, the state will increase the minimum salary requirement for the executive and administrative exemptions to $1,199.10 per week on January 1, 2026.
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Note: There is also a professional exemption under state law. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Federal law currently establishes a minimum salary of $684 per week for the professional exemption. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. |
Washington
In Washington state, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. As a result of a new state minimum wage, all employers must pay a salary of at least $1,541.70 per week in 2026 to qualify for the state’s executive, administrative, and professional exemptions from overtime.
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Note: Employers may pay exempt computer professionals by the hour, provided they pay at least $59.96 per hour in 2026. |
Conclusion
Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. If an employee is covered by both federal and state law but doesn't meet both sets of tests, employers should consult with counsel to determine how they should classify the employee in that particular situation.
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