The salary exempt minimum wage for 2025 is the minimum salary that an employee must be paid in order to be exempt from overtime pay. The Fair Labor Standards Act (FLSA) sets the federal minimum wage and overtime pay requirements for employees in the United States. The salary exempt minimum wage is updated every few years to keep pace with inflation and changes in the cost of living. For 2025, the salary exempt minimum wage is $684 per week, or $35,568 per year.
There are a number of benefits to being exempt from overtime pay. Exempt employees are not required to be paid time and a half for hours worked over 40 in a week. This can save employers a significant amount of money on labor costs. Exempt employees are also more likely to be promoted to management positions, as they are seen as being more valuable to the company.
