
exempt salary threshold
The exempt salary threshold refers to a minimum salary level that employees must earn to be exempt from certain labor regulations, such as overtime pay. In the U.S., for example, if an employee’s salary exceeds this threshold, they are not entitled to overtime pay for hours worked beyond the standard 40-hour workweek. This threshold is set by law and varies by jurisdiction. It aims to distinguish between hourly workers, who are entitled to overtime, and salaried employees, who may have different job responsibilities and work schedules, thus having different compensation expectations.