2026 Exempt-Salary Thresholds
Quick takeaway: The federal white-collar salary floor is unchanged for 2026, but five states—Alaska, California, Maine, New York, and Washington—have higher thresholds taking effect in 2026. Salary alone never makes a role exempt; the duties and salary-basis tests still apply.
Federal (FLSA) refresher — where things stand now
The current federal salary minimum for the executive, administrative, and professional (EAP) exemptions remains $684/week ($35,568/yr) under the 2019 rule. A federal court vacated the 2024 DOL rule that would have raised these levels, so employers are back to the 2019 thresholds unless a state sets a higher bar. (DOL)
Remember: employees must also meet a salary-basis test (paid a fixed, predetermined salary) and a duties test that fits EAP criteria; meeting salary alone isn’t enough. (DOL)
States with 2026 updates (effective dates & amounts)
Alaska — effective July 1, 2026
Minimum exempt salary: $1,120.00/week ($58,240/yr)
Alaska ties exemption pay to 2× the state minimum wage for a 40-hour week; ballot-driven minimum-wage increases trigger the salary changes. (Alaska Labor Department)
California — effective January 1, 2026
Minimum exempt salary for most EAP roles: $1,352/week ($70,304/yr) (= 2× the statewide minimum wage of $16.90).
CA also requires the relevant duties tests; local city wages don’t change the statewide exempt floor. (Thompson Coburn LLP)
Maine — effective January 1, 2026
Minimum exempt salary: $871.16/week ($45,300.32/yr).
Maine pegs the threshold to 3,000× the state minimum wage (whichever is higher—state or federal). (Maine)
New York — effective January 1, 2026
Executive/Administrative exemptions (NY has separate salary rules for these; professional salary floor follows federal unless duties fall under state rule):
NYC, Nassau, Suffolk, Westchester: $1,275/week (~$66,300/yr)
Rest of state: $1,199.10/week (~$62,353.20/yr) (EBC Human Capital Management)
Washington — effective January 1, 2026
Minimum exempt salary: 2.25× state minimum wage = $1,541.70/week (~$80,168/yr) for all employers in 2026 (WA’s multiplier continues to rise through 2028). (Washington L&I)
Don’t forget: exemption rules go beyond salary
To legally classify a role as exempt, you need all three:
Salary basis: A predetermined amount each pay period not reduced by variations in work quality/quantity (limited, narrowly defined deductions allowed). (DOL)
Salary level: Meet or exceed the higher of federal or applicable state threshold (see above). (DOL)
Duties test: Primary duties must fit an exemption. Common buckets:
Executive: management as the primary duty, regularly directs 2+ FTEs, authority/influence over hiring/firing.
Administrative: office/non-manual work related to management or general business operations, with discretion and independent judgment on significant matters.
Professional: learned or creative professions requiring advanced knowledge or originality.
Computer employee: special rules; in several states (e.g., CO) there are specific hourly or salary alternatives for certain computer roles.
Outside sales: no salary minimum under federal law, but duties are tightly defined (primary duty is making sales away from the employer’s place of business). (DOL)
Tip: If a state’s law is more protective (higher salary, narrower duties, different multipliers), you must follow the stricter standard.
What's Next?
If you have employees who live in one of the 5 states with salary threshold changes coming, here is what we need to do:
Map impacted roles in AK, CA, ME, NY, and WA. Compare current salaries to the 2026 thresholds and flag any gaps by work location. (Ogletree)
Re-validate duties: confirm each flagged role still cleanly meets the duties test; adjust job content or reclassify if not. (DOL)
Choose a path per role: (a) Raise pay to the new floor, or (b) reclassify to non-exempt and budget for OT.
Model compression risk: raising minimums can flatten bands—re-tier ranges for leads/managers to maintain differentials. (Ogletree)
Tighten timekeeping & pay practices for any newly non-exempt staff (meal/rest compliance, pre-approval for OT, travel time, remote-work off-the-clock risk).
Communicate & train: update offer letters, handbooks, and manager talking points; schedule quick refreshers on overtime and schedules.
Dates at a glance (2026)
Jan 1, 2026: CA ($1,352/wk), ME ($871.16/wk), NY ($1,199.10 or $1,275/wk by region), WA ($1,541.70/wk). (Thompson Coburn LLP)
July 1, 2026: AK ($1,120/wk). (Alaska Labor Department)
Federal: still $684/week unless changed by new rulemaking or litigation. (DOL)
