U.S. · Employers · Overtime
Exempt salary threshold 2027 by state.
The salary an employee must earn to be overtime-exempt, for the federal rule and the states with a higher test.
The federal salary level is $684 a week ($35,568 a year). California rises to $72,384 a year on January 1, 2027. Washington uses 2.25 or 2.5 times its minimum wage for 40 hours, depending on employer size. This page covers those three; other states with their own test are not covered here.
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Thresholds at a glance
| Where | Weekly minimum | Annual equivalent | How it is set |
|---|---|---|---|
| Federal | $684 | $35,568 | Fixed dollar amount in 29 CFR 541.600 |
| California, from Jan 1, 2027 | $1,392 | $72,384 | 2 × $17.40 minimum wage × 40 hours |
| Washington, 2027 | 2.25 or 2.5 × minimum wage × 40 | Weekly × 52 | 2.25 times for employers with 50 or fewer employees, 2.5 times for 51 or more |
California has its own page with the pay-period table: California exempt salary threshold 2027.
Federal
The eCFR text of 29 CFR 541.600, which shows an amendment dated May 15, 2026, requires an exempt executive, administrative or professional employee to be paid on a salary basis of not less than $684 per week. It translates that to $1,368 biweekly, $1,482 semimonthly and $2,964 monthly, and says the shortest pay period that can meet the requirement is one week. For highly compensated employees, 29 CFR 541.601 sets total annual compensation of at least $107,432, including at least $684 a week on a salary or fee basis. The salary is only one part: the employee must also meet the duties test for the exemption.
California
The state test is two times the statewide minimum wage for full-time work. With the minimum wage rising to $17.40 on January 1, 2027, the Labor Commissioner's Office states the annual salary must be at least $72,384, up from $70,304 in 2026 ($16.90 × 2 × 40 × 52). That is about twice the federal level, so any California employer paying between the two figures should treat the state number as the one to meet.
Washington
Washington's rule, WAC 296-128-545, sets the salary threshold as a multiple of the state minimum wage for a 40-hour week, and the multiple steps up each year: 2.25 times in 2026 for every employer, and in 2027 2.25 times for employers with 50 or fewer employees and 2.5 times for employers with 51 or more. From 2028 it is 2.5 times for all. Washington adjusts its minimum wage each September 30 for inflation (RCW 49.46.020). We could not read the 2027 Washington minimum wage from the state's own announcement, so the checker above asks you to enter it rather than guess. Example: at a $17.00 wage, 2.25 times is $38.25 an hour, or $1,530 a week ($79,560 a year); 2.5 times is $1,700 a week ($88,400 a year). The $17.00 is an illustration, not the 2027 rate.
Other states
Some states set a salary test of their own and are not covered here. New York's labor department says its minimum wage stays at $17.00 in New York City, Long Island and Westchester, and $16.00 elsewhere, on January 1, 2027, but we did not read an exempt-salary figure from it. Check the labor department of the state where the employee works, and plan around the higher of the federal and state numbers once you confirm the state rule.
Worked example
An employer offers an operations manager $52,000 a year. That is $1,000 a week. It clears the federal $684, so the federal salary test is met. In California in 2027, the minimum is $1,392 a week, so $1,000 is short by $392 a week ($20,384 a year). In Washington with 51 or more employees, the minimum would be 2.5 times the 2027 wage for 40 hours. At the illustrative $17.00 above, $1,700, which $1,000 also misses. Same salary, three different answers, which is why the state matters.
Sources
Primary sources opened on November 1, 2026. The plain-English parts of this page are our summary, not official guidance.
- eCFR, 29 CFR 541.600 Amount of salary required (amended May 15, 2026) (read 2026-11-01): federal $684 per week and the biweekly, semimonthly and monthly equivalents
- eCFR, 29 CFR 541.601 Highly compensated employees (read 2026-11-01): highly compensated employee level of $107,432
- California Labor Commissioner (DIR), release 2026-66: California minimum wage rises to $17.40 on January 1, 2027 (read 2026-11-01): California $17.40 and $72,384
- Washington WAC 296-128-545: salary thresholds by year and employer size (read 2026-11-01): Washington multipliers by year and employer size
- Washington RCW 49.46.020: minimum wage and annual September 30 adjustment (read 2026-11-01): Washington annual minimum wage adjustment
- New York State Department of Labor, Minimum wage (read 2026-11-01): New York 2027 minimum wage unchanged
Frequently asked questions
What is the federal exempt salary threshold for 2027?
The federal salary level in 29 CFR 541.600 is $684 per week, or $35,568 a year. The eCFR text we read on November 1, 2026 showed that amount.
What is the California exempt salary threshold for 2027?
$72,384 a year, or $1,392 a week, from January 1, 2027, based on a $17.40 minimum wage.
How does Washington set the threshold?
As a multiple of the state minimum wage for 40 hours: 2.25 times in 2026, then in 2027 2.25 times for employers with 50 or fewer employees and 2.5 times for larger ones, and 2.5 times for everyone from 2028.
Does meeting the salary threshold make an employee exempt?
No. The salary is one requirement. The job must also pass the duties test for the executive, administrative or professional exemption.
Which threshold applies if my state is higher than the federal one?
Plan around the higher number once you have confirmed the state rule with the state labor agency. Here California and Washington are above the federal level.
Why does the Washington checker ask me for the minimum wage?
Washington announces its minimum wage each September 30, and we could not read the 2027 figure from the state's page, so the page does not guess it.
Not legal advice
This page is general information about pay thresholds, not legal advice. Exempt status also depends on job duties and on state law, so confirm with your state labor agency or an employment lawyer before you classify anyone. Everything runs in your browser; nothing you enter is sent anywhere.