Rock the 2025 FPC Exam – Master Payroll Fundamentals with Confidence!

The minimum weekly salary required for exempt employees, as established by the Fair Labor Standards Act (FLSA), is set at $684. This threshold is crucial because it differentiates exempt employees from non-exempt employees regarding overtime pay. Exempt employees are typically those in executive, administrative, or professional roles who meet specific duties tests in addition to the salary requirement.

The importance of the $684 minimum is that it was updated to reflect changes in the economy and labor market, ensuring that the regulations remain relevant to modern employment practices. Employers must comply with this standard to classify employees as exempt correctly; failure to do so would require them to pay overtime to those employees when they work beyond the standard 40 hours per week.

The other salary figures listed (like $400, $500, and $550) do not meet the established criteria and would likely categorize the employees as non-exempt, thus subjecting them to overtime provisions under the FLSA.