Learn more and make sure you get it right!

The Fair Labor Standards Act (FLSA) requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. These employees are called "non-exempt."

RUN sets up an employee as non-exempt for you in either of these cases:

• The employee is hourly.
• The employee is salaried, but earns less than the federal or state salary threshold.

Some employees are considered exempt from the minimum wage and/or overtime requirements of the FLSA. To be exempt, an employee must meet all three of these requirements.**

• They must be paid on a salary basis;
• They must earn at least the minimum applicable salary amount (see below); and
• They must meet certain tests regarding their job duties.

If your employee does not meet any of these requirements, you must classify them as non-exempt. For more information on whether a particular employee should be classified as exempt or non-exempt, see this fact sheet on the U.S. Department of Labor website.

Federal and State Salary Thresholds (As of 7/1/2024)

Federal threshold:

• $844 per week

State thresholds

• Alaska: $938.40 per week
• California: $1,280 per week
• Colorado: $1,057.69 per week
• New York: $1,124.20 per week*
• Washington: $1,302.40 per week*

*There are different thresholds based on employee count and location.

What else should I know?

• **These are the federal requirements. States may have additional requirements for exemption.
• Make sure your employees are classified as exempt or non-exempt correctly to avoid penalties.
• All non-exempt employees are required to track their start work and end work time so that you can provide the overtime and meal rest benefits required by applicable law.