Exempt vs Non-Exempt: Who Gets Overtime?
The difference between exempt and non-exempt employees, the 2026 salary threshold, and why a salary alone doesn't make you exempt from overtime.
Whether you get overtime comes down to one word: exempt. Non-exempt employees must be paid overtime; exempt employees are not entitled to it. Many people are misclassified, so it pays to understand the test.
The two-part test
To be exempt from overtime under the FLSA, an employee must (1) be paid a fixed salary of at least $684/week ($35,568/year) and (2) actually perform exempt executive, administrative or professional duties. Both parts must be met. The 2024 rule that would have raised the salary line was struck down in court in November 2024, so the threshold is back to $35,568.
Salary alone is not enough
A common myth is that any salaried worker is automatically exempt. Not true. If your duties are routine, or you don't manage others or exercise independent judgment on significant matters, you are likely non-exempt and owed overtime, even on a salary.
Higher state thresholds
California, New York, Washington, Colorado, Alaska and Maine set salary thresholds higher than the federal figure. California's is 2× the state minimum wage for full-time work, or $70,304/year in 2026. Check a salary against both with the exempt-salary calculator.