2023 Overtime Salary Threshold
For 2023, the Overtime Salary Threshold figures are $684 (Standard salary level per week), $35,568 (Standard salary level, annual equivalent), $107,432 (Highly compensated employee total annual compensation) and 4 more figures below.
| Item | Amount | Annual equivalent | Hourly basis | Puerto Rico, Guam, the U.S. Virgin Islands, and the CNMI | American Samoa | Motion picture industry |
|---|---|---|---|---|---|---|
| Standard salary level | $684 | $35,568 | - | - | - | - |
| Highly compensated employee total annual compensation | $107,432 | - | - | - | - | - |
| Compensation required for computer employees | - | - | $27.63 | - | - | - |
| Special salary level per week | - | - | - | $455 | $380 | - |
| Special base rate per week | - | - | - | - | - | $1,043 |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2023-01-01Source: Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSA (DOL)Verified 2026-09-03
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Standard salary level per week | $684 | $684 | +$0 (+0.0%) |
| Standard salary level, annual equivalent | $35,568 | $35,568 | +$0 (+0.0%) |
| Highly compensated employee total annual compensation | $107,432 | $107,432 | +$0 (+0.0%) |
| Compensation required for computer employees, hourly basis | $27.63 | $27.63 | +$0 (+0.0%) |
| Special salary level per week, Puerto Rico, Guam, the U.S. Virgin Islands, and the CNMI | $455 | $455 | +$0 (+0.0%) |
| Special salary level per week, American Samoa | $380 | $380 | +$0 (+0.0%) |
| Special base rate per week, motion picture industry | $1,043 | $1,043 | +$0 (+0.0%) |
Standard salary level
Compensation required for computer employees
Special salary level per week
Special base rate per week
$27.63$35,568
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Employers and employees subject to the FLSA overtime provisions who rely on the executive, administrative, or professional exemption.
What changed this year, and why
The Department of Labor's salary thresholds for the executive, administrative, and professional exemption from overtime under the Fair Labor Standards Act remained unchanged in 2023.
Common questions
- What was the standard salary level for the EAP overtime exemption in 2023?
- The standard salary level was $684 per week, equivalent to $35,568 per year.
- What was the total annual compensation threshold for highly compensated employees in 2023?
- Highly compensated employees had to earn at least $107,432 in total annual compensation.
- Did the thresholds change from 2022 to 2023?
- No. The standard salary level and the highly compensated employee threshold were the same in 2023 as in 2022.
Being paid a salary means a predetermined amount that does not vary
Under federal overtime rules, an employee must satisfy three separate tests to qualify as exempt from overtime pay under the executive, administrative, or professional (white collar) exemptions. One of those three is the salary basis test. This test asks whether the employee receives a predetermined and fixed salary that does not go up or down based on how much work is done in a given week or how good the work is. In other words, the employee's pay is a set amount each pay period rather than an hourly wage that varies with hours worked. The salary basis test sits alongside the salary level test (which requires that the salary meet a minimum dollar amount) and the duties test (which requires that the employee's job duties be primarily executive, administrative, or professional). An employee must pass all three tests to be classified as exempt. For 2023, the DOL sets the standard salary level at $684 per week ($35,568 annually), and a separate higher total annual compensation threshold of $107,432 applies to highly compensated employees.
To be exempt under the standard EAP test, the employee must: Be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the salary basis test);
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
The salary is only half of it: the duties test
An employee's job duties must primarily involve executive, administrative, or professional tasks to qualify for the overtime exemption. The term "primary duty" refers to the main, principal, or most important duty the employee performs. It is not determined by the amount of time spent on exempt versus non-exempt tasks, although time spent can be a useful guide. The primary duty test focuses on the character of the employee's job as a whole. An employee who spends more than half of their time on exempt work will generally satisfy the requirement, but time alone is not the sole test. The current standard salary level is $684 per week, or $35,568 annually. For highly compensated employees earning $107,432 or more in total annual compensation, the duties test is less stringent, requiring only that the employee's primary duty include performing office or non-manual work and one or more exempt duties.
The Department believes that the standard duties test, which focuses on whether an employee's ``primary duty'' consists of EAP tasks, can appropriately distinguish bona fide EAP employees from nonexempt workers.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
The shorter test for highly compensated employees
The Fair Labor Standards Act provides a special, more lenient test for highly compensated employees. An employee qualifies as highly compensated if they earn at least $107,432 in total annual compensation. These employees must still receive at least $684 per week paid on a salary or fee basis, but the remainder of their total annual compensation can include commissions, nondiscretionary bonuses, and other nondiscretionary compensation. The duties test for highly compensated employees is also more relaxed. Rather than having to meet the full standard duties test, these employees need only customarily and regularly perform any one or more of the exempt duties or responsibilities of an executive, administrative, or professional employee. The primary duty must still include performing office or non-manual work.
The HCE test applies only to employees whose primary duty includes performing office or non-manual work.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
When a bonus can count toward the salary level
Under federal overtime rules, employers may count nondiscretionary bonuses and incentive payments toward the standard salary level requirement. These payments can satisfy a portion of the weekly salary threshold, which is currently $684 per week ($35,568 annually). The bonuses must be paid on an annual or more frequent basis to count toward the salary level. Nondiscretionary bonuses include those tied to productivity, profitability, efficiency, or length of service - bonuses that employees expect to receive based on predetermined criteria. Discretionary bonuses, which are given unexpectedly without any prior promise or agreement, do not count toward the salary threshold. For highly compensated employees earning $107,432 or more in total annual compensation, nondiscretionary bonuses, commissions, and other incentive payments can count toward the full total compensation requirement, making it easier for high earners to meet the threshold.
the Department again proposed to permit nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the standard or special salary level tests for the EAP exemption.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
Workers the exemption never reaches, whatever they are paid
The executive, administrative, and professional overtime exemption never applies to blue collar workers, regardless of how much they are paid. Blue collar workers are employees who perform work involving repetitive operations with their hands, physical skill, and energy. This includes manual laborers, mechanics, construction workers, electricians, carpenters, and other tradespeople. The exemption is limited to white collar workers whose primary duties involve executive, administrative, or professional tasks. Even if a blue collar worker is paid on a salary basis and earns well above the $684 per week ($35,568 annually) threshold, they are still entitled to overtime pay under the Fair Labor Standards Act. The duties test, not the salary level, determines their nonexempt status. This ensures that workers performing manual labor receive overtime protection regardless of their compensation method or amount.
employees who perform work involving repetitive operations with their hands, physical skill, and energy cannot be exempt under this section.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
You can pay biweekly or monthly, but the floor is set on a weekly basis
Under the 2023 overtime rule published by the Department of Labor, the standard salary level of $684 per week (or $35,568 annually) is the floor, but employers are not required to pay on a weekly schedule. The required weekly amount may be translated into equivalent amounts for longer pay periods - for example, $1,368 biweekly, $1,482 semimonthly, or $2,964 monthly. However, the shortest period of payment that satisfies the compensation requirement is one week. This means that even if an employer pays biweekly or monthly, the employee must still receive at least the weekly equivalent in each pay period to meet the salary threshold for the exemption.
The required amount of compensation per week may be translated into equivalent amounts for periods longer than one week. For example, the $684-per-week requirement will be met if the employee is compensated biweekly on a salary basis of not less than $1,368, semimonthly on a salary basis of not less than $1,482, or monthly on a salary basis of not less than $2,964. However, the shortest period of payment that will meet this compensation requirement is one week.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
Paying more than the guaranteed minimum never threatens the exemption
Under the 2023 overtime rule published by the Department of Labor, paying an exempt employee more than the guaranteed minimum of $684 per week does not cause them to lose their exemption. An employer may provide additional compensation - such as commissions, bonuses, or a percentage of sales or profits - without violating the salary basis requirement, as long as the employment arrangement also includes a guarantee of at least $684 each week paid on a salary basis. The additional compensation may be paid on any basis, including a flat sum, bonus, straight-time hourly amount, time and one-half, or other method, and may include paid time off. The key is that the guaranteed weekly minimum must still be met.
An employer may provide an exempt employee with additional compensation without losing the exemption or violating the salary basis requirement, if the employment arrangement also includes a guarantee of at least the minimum weekly-required amount paid on a salary basis.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
Some professionals qualify without meeting the salary threshold at all
Under the 2023 overtime rule published by the Department of Labor, some employees are not subject to salary tests. The standard salary level of $684 per week (or $35,568 annually) applies to most executive, administrative, and professional employees seeking the overtime exemption. However, employees engaged as teachers, doctors, lawyers, business owners, and outside sales employees are not subject to salary tests. These workers must still meet the duties tests for their respective exemptions, but they do not need to be paid at or above the standard salary threshold to qualify. The 2023 rule maintains this longstanding exception, recognizing that these professions have distinct compensation structures that do not always follow traditional salary arrangements.
Some employees, such as business owners, doctors, lawyers, teachers, and outside sales employees, are not subject to salary tests.
Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (84 FR 51230, September 27, 2019) (DOL)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
- Standard salary level per week
Standard Salary Level $684 per week (equivalent to a $35,568 annual salary)
- Standard salary level, annual equivalent
Standard Salary Level $684 per week (equivalent to a $35,568 annual salary)
- Highly compensated employee total annual compensation
Total Annual Compensation Requirement for Highly Compensated Employees $107,432 per year, including at least $684 per week paid on a salary or fee basis
- Compensation required for computer employees, hourly basis
Compensation Required for Computer Employees Paid on an Hourly Basis $27.63 per hour
- Special salary level per week, Puerto Rico, Guam, the U.S. Virgin Islands, and the CNMI
Special Salary Level for Employees in Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands $455 per week (equivalent to a $23,660 annual salary)
- Special salary level per week, American Samoa
Special Salary Level for Employees in American Samoa $380 per week (equivalent to a $19,760 annual salary)
- Special base rate per week, motion picture industry
Special Base Rate for Employees in the Motion Picture Industry $1,043 per week (or a proportionate amount based on the number of days worked)