Understanding Payroll Taxes and the Importance of a Payroll Tax Calculator Payroll taxes are...
2025 State Overtime Salary Levels
Under federal and state laws, employers must compensate their employees with 1.5 times their regular rate of pay for any hours of overtime work. However, under these laws, employees who work in an executive, administrative, or professional (EAP) capacity are exempt from overtime pay if they satisfy the salary level requirements for their exemption.
Under the FLSA, the current salary level requirement for the EAP exemption is $684 per week ($35,568 per year) on a salary or fee basis. For highly compensated employees (HCEs), the salary level is $107,432, which includes at least $684 per week paid on a salary or fee basis.
While these salary levels apply in most U.S. jurisdictions, some states have adopted EAP salary levels higher than the ones required by the FLSA. These states are:
- Alaska;
- California;
- Colorado;
- Maine;
- New York; and Washington
The table below provides an overview of state EAP overtime salary levels higher than the FLSA thresholds. Additional salary thresholds for other overtime exemptions are also provided as a convenience.
Jurisdiction |
2025 Salary Level |
Effective Date |
Notes |
Alaska |
Standard EAP salary level:
|
Jan. 1, 2025 |
Salaried employees who are bona fide EAP employees are exempt from the minimum wage and overtime requirements. However, they must maintain a salary equivalent to two times the minimum wage for the first 40 hours worked in a workweek. Note: Alaska voters approved a ballot measure that will increase the state’s minimum wage to $13 per hour on July 1, 2025. As a result, the state’s standard EAP salary level will also increase on that date to $1,040 per week or $54,080 per year. |
California |
Standard EAP salary level:
Computer software employee:
Licensed physicians and surgeons:
|
Jan. 1, 2025
|
The standard EAP salary level is twice the state minimum wage rate based on a 40-hour workweek. |
Colorado |
Standard EAP salary level:
Agricultural range workers:
Highly technical computer employees:
HCEs:
Drivers and driver helpers:
Seasonal camp or outdoor education field staff:
|
Jan. 1, 2025 |
Most overtime salary thresholds are dependent on the state’s minimum wage rate. |
Maine |
Standard EAP salary level
|
Jan. 1, 2025 |
The EAP salary level must exceed 3,000 times the state minimum wage divided by 52. |
New York |
Standard administrative and executive employee salary level:
|
Jan. 1, 2025 |
In New York, there is also a professional exemption under state law. However, there is no minimum salary requirement for the professional exemption. |
Washington |
Standard EAP salary level for large employers (51 or more employees):
Standard EAP salary level for small employers (50 or fewer employees):
Computer professional (regardless of employer size):
|
Jan. 1, 2025 |
The standard EAP salary level for larger employers is 2.25 times the state’s minimum wage rate, the standard EAP salary level for smaller employers is two times the state’s minimum wage rate, and the computer professional salary level is 3.5 times the state’s minimum wage rate. |
Important Dates
Jan. 1, 2025
New salary levels for EAP exemptions become effective in Alaska, California, Colorado, Maine, New York, and Washington.
DOL’s Final Overtime Rule
On April 23, 2024, the DOL announced a final rule to amend current requirements employees in white-collar occupations must meet to qualify for an FLSA overtime exemption. The final rule increased the standard salary level on July 1, 2024, from $684 to $844 per week for EAPs and from $107,432 to $132,964 per year for HCEs. On Jan. 1, 2025, the standard salary level was set to increase again. However, on Nov. 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the DOL’s final rule, returning the salary threshold to the pre-July 2024 threshold. The DOL has appealed the 5th Circuit’s ruling.
Links and Resources
- S. Department of Labor (DOL) overtime pay website
- DOL overtime e-tools
For more information on State Overtime Salary levels in California contact a TPG Payroll & HR Specialist at 909.466.7876 today!
Also, check out the December Compliance Calendar Important Dates and the November 2024 Compliance Calendar's Important Dates on our blogs/resources page.