Each year, several states review and adjust the minimum salary requirements for exempt workers. These adjustments are largely based on either new inflationary metrics or a predetermined amount based on local legislation.

Starting January 1, 2025, the new applicable state minimum salary threshold amounts are:

• Alaska: $49,545.60
• California: $68,640.00
• Colorado: $56,485.00
• Maine: $43,950.00
• New York: $60,405.80
  • NYC, Nassau, Suffolk, Westchester Counties: $64,350.00
• Washington:
  • 1-50 employees: $69,305.60
  • 51+ employees: $77,968.80

These new rates reflect the minimum an exempt employee must be paid, on a regular salary basis, in order to maintain an “exempt” classification (by state standards). Employees classified as exempt workers must meet both the state and federal minimum pay requirements (federal minimum rates recently returned to $35,568.00).

These rates do not have an impact on other factors that may determine if a worker can be classified as exempt, which may differ from state to state. Workers must still meet both state and federal exempt classification guidelines in order to be appropriately deemed exempt.

Employers should review salaried employee pay amounts prior to the end of the year to determine if any of their current workforce will be impacted.

 

 

 

This information does not constitute legal advice.