Exempt Salary Calculator
This tool helps determine if an annual salary meets the "Salary Level Test" for overtime exemption under the Fair Labor Standards Act (FLSA) and certain state laws.
Enter your annual salary, work state, and pay frequency. The calculator will compare your salary to the applicable minimum threshold and calculate your gross pay per paycheck.
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Understanding Exempt vs. Non-Exempt Status
What is the Salary Level Test?
To be considered "exempt" from overtime pay, an employee generally must meet three tests defined by the Fair Labor Standards Act (FLSA):
- Salary Basis Test: Being paid a fixed, predetermined salary that is not subject to reduction because of variations in the quality or quantity of work.
- Salary Level Test: Earning a salary that meets a minimum specified threshold. This is what our calculator checks.
- Duties Test: Primarily performing job duties that are considered executive, administrative, or professional in nature.
Crucial Note: Passing the Salary Level Test alone does not make an employee exempt. They must also pass the Duties Test, which this calculator cannot evaluate.
Federal vs. State Thresholds
The FLSA sets a federal minimum salary threshold. However, many states have enacted their own, higher thresholds. In such cases, employers must comply with the law that is more favorable to the employee (i.e., the higher salary threshold). This calculator automatically compares your salary against the higher of the two applicable thresholds.
The values used in this calculator are based on 2024 data and are subject to change. Always verify with official sources.
10 Calculation Examples
Click on an example to see how different inputs affect the outcome:
Example 1: Meets Federal, Fails California
Scenario: An employee in California earns $60,000 per year.
1. Inputs: Annual Salary = $60,000, State = California.
2. Thresholds: Federal is $35,568. California is $66,560.
3. Comparison: The calculator uses the higher California threshold. $60,000 is less than $66,560.
4. Result: Attention Required. The salary does NOT meet the minimum for exemption in California, suggesting non-exempt status.
Example 2: Meets Federal Standard
Scenario: An employee in Texas (not a high-threshold state) earns $50,000 per year.
1. Inputs: Annual Salary = $50,000, State = Federal / Other State.
2. Threshold: The federal threshold of $35,568 applies.
3. Comparison: $50,000 is greater than $35,568.
4. Result: Congratulations! The salary meets the federal Salary Level Test.
Example 3: Fails Federal Standard
Scenario: An employee earns $34,000 per year.
1. Inputs: Annual Salary = $34,000, State = Federal / Other State.
2. Threshold: The federal threshold of $35,568 applies.
3. Comparison: $34,000 is less than $35,568.
4. Result: Attention Required. The salary does NOT meet the minimum for exemption, suggesting non-exempt status.
Example 4: Meets New York Standard
Scenario: An employee in NYC earns $65,000/year and is paid semi-monthly.
1. Inputs: Annual Salary = $65,000, State = New York, Frequency = Semi-monthly.
2. Threshold: The NY (NYC) threshold of $62,400 applies.
3. Result: Congratulations! The salary meets the NY Salary Level Test. Gross pay is $65,000 / 24 = $2,708.33 per paycheck.
Example 5: Fails Washington Standard
Scenario: An employee in Washington earns $65,000/year.
1. Inputs: Annual Salary = $65,000, State = Washington.
2. Threshold: The WA threshold of $67,724.80 applies.
3. Result: Attention Required. The salary is below Washington's minimum, suggesting non-exempt status.
Example 6: Meets Colorado Standard
Scenario: An employee in Colorado earns $58,000/year and is paid bi-weekly.
1. Inputs: Annual Salary = $58,000, State = Colorado, Frequency = Bi-weekly.
2. Threshold: The CO threshold of $55,000 applies.
3. Result: Congratulations! The salary meets the CO test. Gross pay is $58,000 / 26 = $2,230.77 per paycheck.
Example 7: Meets Maine Standard
Scenario: An employee in Maine earns $42,000/year and is paid weekly.
1. Inputs: Annual Salary = $42,000, State = Maine, Frequency = Weekly.
2. Threshold: The ME threshold of $41,401 applies.
3. Result: Congratulations! The salary meets the ME test. Gross pay is $42,000 / 52 = $807.69 per paycheck.
Example 8: High Salary Employee
Scenario: A highly compensated employee in California earns $150,000/year.
1. Inputs: Annual Salary = $150,000, State = California.
2. Threshold: The CA threshold of $66,560 applies.
3. Result: Congratulations! The salary easily exceeds the minimum threshold.
Example 9: Edge Case - Salary Matches Threshold Exactly
Scenario: An employee in California earns exactly $66,560/year.
1. Inputs: Annual Salary = $66,560, State = California.
2. Threshold: The CA threshold is $66,560.
3. Comparison: The salary must be "greater than or equal to" the threshold. Since $66,560 = $66,560, it passes.
4. Result: Congratulations! The salary meets the minimum threshold.
Example 10: Monthly Pay Calculation
Scenario: An employee in Florida earns $80,000/year and is paid monthly.
1. Inputs: Annual Salary = $80,000, State = Federal, Frequency = Monthly.
2. Threshold: The federal threshold of $35,568 applies.
3. Result: Congratulations! The salary meets the test. Gross pay is $80,000 / 12 = $6,666.67 per paycheck.
Frequently Asked Questions (FAQs)
1. What is an "exempt" employee?
An exempt employee is one who is not entitled to overtime pay under the Fair Labor Standards Act (FLSA). To qualify, they must generally meet three criteria: the "salary basis test" (paid a fixed salary), the "salary level test" (earn above a certain minimum), and the "duties test" (perform specific job duties).
2. What is the "Salary Level Test" that this calculator checks?
It's the minimum annual salary an employee must earn to be considered for exemption. This calculator compares your salary to the higher of the federal minimum or your state's specific minimum, as some states have stricter requirements.
3. The calculator says I meet the salary level. Does this guarantee I am exempt?
No. This is the most critical point. Meeting the salary level is only one of three requirements. You must also meet the "Duties Test," which involves the specific nature of your job responsibilities (e.g., executive, administrative, professional). This calculator cannot evaluate your job duties.
4. Why does my work state matter for my salary?
While there is a federal minimum salary for exemption, many states have passed laws requiring a higher minimum salary. Employers in those states must adhere to the higher state-level threshold. This calculator automatically uses the higher value when you select a state with a stricter law.
5. What if my state isn't in the dropdown list?
If your state is not listed, you should select the "Federal / Other State" option. This will compare your salary against the current federal minimum threshold established by the FLSA.
6. What is the "Duties Test"?
The Duties Test is a qualitative assessment of your primary job functions. To be exempt, your main duties must involve tasks classified as executive, administrative, professional, computer, or outside sales. Because this is about job roles and not numbers, a calculator cannot determine if you pass this test.
7. My salary is below the threshold. What does this mean?
If your salary is below the applicable minimum threshold, you are almost certainly a "non-exempt" employee, regardless of your job duties. This means you should be eligible for overtime pay for any hours worked over 40 in a workweek.
8. How is my "Gross Pay Per Paycheck" calculated?
It's a simple calculation: Your total annual salary is divided by the number of pay periods in a year based on the frequency you select (e.g., 52 for weekly, 26 for bi-weekly, 12 for monthly). This is your pay before taxes and other deductions.
9. Is this calculator legal advice?
Absolutely not. This is an informational tool designed to provide a quick estimate based on publicly available data for 2024. Exemption laws are complex. For a definitive answer, you must consult with a qualified legal professional or your state's Department of Labor.
10. Where does the salary threshold data come from?
The federal threshold is set by the U.S. Department of Labor under the FLSA. The state-specific thresholds are set by individual state legislatures or labor departments. These figures can change, so it's always good to verify them with official sources.
