If you are a salaried employee in California, New York or Maine who is treated as exempt from the overtime pay requirements [i.e. you do not get paid overtime], you should make sure that your salary actually meets the minimum amount required by state law to qualify for the exemption to the overtime rules. If not, you may be the victim of wage theft and entitled to back overtime pay (potentially doubled).
While federal wage law has recently increased the salary threshold for the white-collar exemptions from overtime pay from $23,660 to $35,568 as of Jan. 1, 2020, employers in California, New York and Maine must comply with higher state levels.
Employers must pay whichever salary threshold is greater – federal or state
What is the minimum California Salary for Exempt Employees?
In California, the minimum salary required for the executive, administrative and professional exemptions is double the state minimum wage. So, when the minimum wage goes up so does the exempt salary threshold. California’s minimum salary for 2025 is $68,640 (annualized) and will increase to $70,304 as of Jan. 1, 2026.
For individuals to qualify as exempt employees, California labor law requires that:
- They perform exempt duties more than 50% of their work time, and
- Exempt executive, administrative, and professional employees earn a salary of no less than two times the state minimum wage for full-time employment. The minimum annual salary is based on the current state minimum wage, calculated as follows: minimum wage x 2 x 2080 hours.
Applying the formula, as of January 1, 2026, the minimum salary threshold for these exemptions is:
- $16.90/hour x 2 x 2080 = $70,304 per year (or $1,352 per week)
Note that California’s increased minimum wage will also impact commissioned inside salespeople. Under California law, commissioned inside salespeople are exempted from the state’s overtime laws if the employee earns more than 1.5 times the state minimum wage and more than half of the employee’s compensation represents commission earnings. So, in order to maintain their exempt status, commissioned inside salespeople will need to earn more than $25.35 per hour starting January 1, 2026.
What is the minimum New York Salary for Exempt Employees?
The New York state minimum salary threshold for executive and administrative employees has been increasing over the past few years, with the applicable rate varying based on job location. For example, the minimum annual salary for 2025 was $64,350 ($1,237.50 per week) for employees who work in New York City, Nassau, Suffolk, and Westchester counties and in the remainder of the state $60,405.80/year ($1161.65 per week).
As of 2026, businesses in New York City, Nassau, Suffolk, and Westchester counties will need to pay exempt workers at least $66,300 per year ($1,275 per week). The threshold in other areas of the state will be raised to $62,353.20 per year ($1,199.10).
What is the minimum Maine Salary for Exempt Employees?
The minimum annual salary for exempt workers in Maine is an amount that is at least 3,000 times the state minimum wage. As of 2025, that puts the minimum salary required under ME state law at $43,951 per year, which is higher than the federal law threshold of $35,568 per year set in 2020 (federal law minimum salary increased to $684 as of 1/1/20). Maine’s minimum salary for exempt workers will increase to $45,300.32 per year in 2026 when the Maine minimum wage rate increases.
Maine employers will need to comply with the higher state threshold, as employers must comply with the law that provides the most compensation to the employee.
What to Do If You Have Not Been Paid The Minimum Salary Required by Law
If you have worked a job that requires you to work overtime but have not been paid at least time and one-half because you were classified as salaried exempt, even though your salary was below the minimum amount required by law, there is a good chance that you and your coworkers could be owed significant compensation for the underpayment and late payment of overtime wages.
If you have questions or believe that you have been the victim of wage theft contact us for a free and confidential review of your situation.
Michael Lore
Founding Attorney
Michael Lore is the founder of The Lore Law Firm with over 25 years of experience in labor and employment law. He handles cases ranging from unpaid overtime and class actions to executive contracts and personal injury matters in courts nationwide.
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