The Exempt Salary Calculator is a compliance and payroll tool used to determine whether an employee meets the minimum salary threshold to qualify as an “exempt” employee under federal labor laws. An exempt employee is not entitled to overtime pay under the Fair Labor Standards Act (FLSA) or similar state regulations, provided certain criteria are met, including receiving a fixed salary above a defined limit.
This calculator simplifies the process by converting weekly or monthly salaries into annual equivalents, making it easy to assess if an employee’s pay structure aligns with legal exemption standards. Employers use it to maintain labor law compliance, while HR professionals rely on it for structuring compensation plans.
Formula of Exempt Salary Calculator
Standard Annual Calculation
Exempt Salary = Weekly Salary × 52
Where:
- Exempt Salary is the total yearly salary required to maintain exempt status
- Weekly Salary is the fixed minimum weekly pay under the FLSA (as of 2023, this is $684/week in the U.S.)
- 52 is the number of weeks in a calendar year
Monthly Input Formula
Exempt Salary = Monthly Salary × 12
This is used when compensation is given on a monthly basis rather than weekly.
Reverse Calculation
If the annual salary is known and you need to find the equivalent weekly amount:
Weekly Salary = Exempt Salary / 52
These formulas are critical for ensuring that salaried employees are correctly classified and that companies meet wage floor regulations to avoid penalties or legal issues.
Common Reference Table for Exempt Salary Benchmarks
Here is a table showing frequently searched exempt salary values for both weekly and monthly pay levels. These estimates are based on FLSA thresholds and are useful for HR audits and compliance checks.
| Weekly Salary ($) | Monthly Salary ($) | Annual Salary ($) |
|---|---|---|
| 684 | 2,964 | 35,568 |
| 800 | 3,467 | 41,600 |
| 1,000 | 4,333 | 52,000 |
| 1,250 | 5,417 | 65,000 |
| 1,500 | 6,500 | 78,000 |
| 2,000 | 8,667 | 104,000 |
This table helps employers quickly verify pay levels for job classifications and ensures they are not mislabeling non-exempt roles.
Example of Exempt Salary Calculator
Let’s say an employer pays an employee $850 per week and wants to verify if the employee meets the exempt threshold.
Step 1:
Exempt Salary = 850 × 52 = $44,200
Since the FLSA minimum salary threshold for exempt employees is $35,568/year (as of 2023). This employee’s annual salary of $44,200 qualifies them for exempt status (provide other exemption criteria are meet such as job duties and pay structure).
If the employee were paid $3,000 per month, then:
Exempt Salary = 3,000 × 12 = $36,000
This still meets the threshold, which helps confirm compliance without needing overtime payments.
Most Common FAQs
This tool falls under the employment law and compensation compliance calculators category. It is use for wage audits, HR planning, and labor classification assessments.
No. It only checks salary threshold compliance. To qualify for exemption, employees must also meet specific job duty tests under the FLSA, such as executive, administrative, or professional duties.
If an employee earns less than the minimum threshold, they must be classified as non-exempt. This means they are entitled to overtime pay for hours worked beyond 40 per week, regardless of job title.