The exempt threshold 2025 refers to the dollar amount above which employees are exempt from overtime pay under the Fair Labor Standards Act (FLSA). In 2023, the threshold is $684 per week or $35,568 per year. The Department of Labor (DOL) has proposed raising the threshold to $825 per week or $43,450 per year in 2025.
Raising the exempt threshold would benefit employers by reducing their labor costs. It would also benefit employees who are currently exempt from overtime pay by giving them the right to overtime pay when they work more than 40 hours per week. However, raising the threshold could also have some negative consequences, such as reducing the number of jobs available for low-wage workers.