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SALARY THRESHOLD: The annual rate of basic pay for this position is equal to or greater

SALARY THRESHOLD: The annual rate of basic pay for this position is equal to or greater 2025

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The document is a checklist for determining whether an employee qualifies for the Fair Labor Standards Act (FLSA) executive exemption. It outlines specific criteria, including salary threshold, primary management duties, and supervisory responsibilities that must be met for an employee to be classified as exempt. The checklist guides users through a series of questions to assess eligibility based on defined regulations.

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What is the threshold for salary?

For example, the minimum wage in California will increase for most workers to $16.50/hour, which means the minimum exempt salary will increase to $68,640 annually.

What is the meaning of basic pay in OPM?

Basic Pay is defined as the rate fixed by applicable law or regulation.

What is the rate limited to the rate for level IV of the executive schedule?

5305 for most GS employees are capped at the rate for level IV of the Executive Schedule (EX-IV), which is $195,200 in 2025. When the biweekly (or annual, if applicable) cap on premium pay is reached, employees may still be ordered to perform overtime work without receiving further compensation.

What is the rate of basic pay for Level II of the executive schedule?

Calculation of pay rate Level I$250,600 Level II $225,700 Level III $207,500 Level IV $195,200 Level V $183,100

What is 86.5 percent of the rate of basic pay for level 2 of the executive schedule?

One provision restricts the post-employment activities of senior employees at 86.5 percent of the rate of basic pay for level II of the Executive Schedule. That threshold is now $195,231.

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