The Fair Labor Standards Act (FLSA) sets a minimum salary threshold for exempt employees, which is the minimum amount an employee must be paid to be considered exempt from overtime pay. For 2022, the federal minimum salary for exempt employees is $35,568 per year, or $684 per week. This means that employers must pay exempt employees at least this amount in order to avoid paying them overtime for hours worked over 40 per week.
There are several benefits to classifying employees as exempt. Exempt employees are not entitled to overtime pay, which can save employers money. Additionally, exempt employees are often seen as more valuable and trusted employees, which can lead to higher levels of job satisfaction and productivity.
