Under the federal Fair Labor Standards Act (FLSA), non-exempt employees are paid for every hour worked, plus overtime for hours over 40 in a workweek. Exempt employees aren’t owed overtime, but only if they earn a salary of at least $684 a week (as of October 2026) and their real duties pass a federal test. Utah has no overtime law of its own, so the federal rules decide.
A salary alone doesn’t make an employee exempt from overtime. When a salaried role is classified incorrectly, the employer may owe overtime for hours that were never paid. Check the pay arrangement and the actual duties before deciding how to classify the position.
For non-exempt employees, you need to account for each hour worked and pay overtime after 40 hours in the workweek. For a properly exempt employee, the salary generally covers the week’s work. That difference matters when planning schedules and payroll.
What’s the difference between exempt and non-exempt employees?
A non-exempt employee is covered by the FLSA’s minimum-wage and overtime rules. An exempt employee meets a specific exemption, most often the white-collar exemption for executive, administrative or professional work, and isn’t owed overtime.
For private employers, paying overtime can’t be replaced by an informal agreement to take time off later.
“There’s no free or donated labor… There’s no comp time, so people can’t work overtime, not be paid for it, and then book that for a day off later down the road.”
— Josh Henderson, Founder, Denali HR
A non-exempt employee in Utah must receive at least $7.25 for each hour worked, the federal and Utah minimum. Hours actually worked beyond 40 in a workweek must be paid at no less than one and one-half times the regular rate (29 CFR 778.107). The workweek is a fixed, recurring 168-hour period. It can be changed permanently, but not to avoid overtime (29 CFR 778.105). Define that period in your payroll setup and use it consistently.
Federal rules allow public agencies, such as state and local governments, to use compensatory time in place of overtime pay under specified conditions (29 CFR 553.20). A private business can’t bank a non-exempt employee’s overtime as a future day off.
| Federal FLSA rule (applies in Utah) | Non-exempt employee | Exempt employee (white-collar) |
|---|---|---|
| How they’re paid | Hourly or salary; every hour worked counts | Salary of at least $684/week (as of Oct 2026) |
| Overtime | Required for hours worked over 40 in the workweek | Not required |
| Comp time instead of overtime pay | Not allowed for private employers | Not applicable |
| Minimum wage | At least $7.25/hour (federal and Utah) | Met through the salary level |
| A slow week | Pay for hours actually worked | Full salary for any week with any work |
| Utah jury duty | No pay required (Utah Code 78B-1-116) | No deduction for jury-duty absence; jury fees may be offset |
What is the FLSA salary threshold for exempt employees in 2026?
As of October 2026, the federal salary threshold for the white-collar exemption is $684 per week, which is $35,568 a year. Translated to common pay schedules:
- Weekly: $684
- Biweekly: $1,368
- Semimonthly: $1,482
- Monthly: $2,964
Up to 10% of that level can come from nondiscretionary bonuses or commissions, as long as they’re paid at least annually. Two other tests use different numbers. A highly compensated employee (HCE) needs at least $107,432 in total annual compensation, including at least $684 a week paid as salary. Certain computer employees can alternatively be paid at least $27.63 an hour.
If you’ve seen $844 or $1,128 a week, those came from the 2024 rule, and it’s gone. A federal court in Texas vacated it on November 15, 2024, the Fifth Circuit dismissed the appeals on May 5 and 7, 2026, and the Labor Department formally removed the 2024 text and restored the 2019 text effective May 15, 2026. As of October 2026, the department hasn’t proposed a new salary level. If an offer letter or handbook still quotes the 2024 figures, update it.
Utah permits annual-salaried employees to be paid monthly, by the 7th (Utah Code 34-28-3). A monthly exempt paycheck must reach at least $2,964 to meet the federal salary threshold.
Which job duties make an employee exempt?
The salary threshold is only part of the exemption test. The employee’s primary duties must also qualify. Giving someone a managerial title doesn’t establish an exemption.
- Executive (29 CFR 541.100). The primary duty is managing the business or a recognized department. The person directs the work of two or more employees and can hire or fire, or their recommendations on hiring and firing get “particular weight.”
- Administrative (29 CFR 541.200). Office or non-manual work directly related to management or general business operations, with “discretion and independent judgment with respect to matters of significance.”
- Professional (29 CFR 541.300). Work requiring advanced knowledge “customarily acquired by a prolonged course of specialized intellectual instruction,” or work requiring creative originality or talent.
Review salaried positions with these characteristics before treating them as exempt:
- The “manager” has nobody reporting to them, or only one person.
- Most of the day is the same hands-on work the hourly team does.
- The job follows set procedures, and real decisions go to the owner.
Watch for this during promotions. Moving a strong hourly lead into a salaried “supervisor” role changes nothing for overtime unless the job itself changes and the salary meets the level. If you’re working through a promotion right now, read our piece on whether a promotion should come with a raise alongside this one.
Does Utah have its own overtime or exemption rules?
No. The Utah Labor Commission says it plainly: “The State of Utah has no overtime law.” Utah also has no separate exemption test, so a Utah employer applies the federal FLSA rules above. Overtime complaints from Utah workers go to the U.S. Department of Labor’s Wage and Hour Division, which has a Salt Lake City office (801-524-5706), not to the state.
Utah law still touches classification in a few places:
| Utah rule | What it means for exempt vs non-exempt | Source |
|---|---|---|
| Minimum wage | $7.25/hour, and the state can’t set it above the federal rate | Utah Code 34-40-103 |
| Paydays | At least semimonthly, within 10 days after the period closes; annual-salaried staff may be paid monthly by the 7th | Utah Code 34-28-3 |
| Pay notice | Tell employees their payday, place and rate at hire, and before any change | Utah Code 34-28-4 |
| Final pay | If you end someone’s employment, final wages are due within 24 hours | Utah Code 34-28-5 |
| Jury duty | No pay duty for non-exempt staff; you can’t require or request that they use vacation or sick leave | Utah Code 78B-1-116 |
If anyone on your payroll works outside Utah, check that state’s wage rules separately. Our multi-state payroll checklist is a good starting point.
Can you give an exempt employee more work without more pay?
A correctly classified exempt employee generally receives the same salary for a 40-hour or a 50-hour week. That doesn’t remove the need to consider whether the workload is reasonable.
“Yes, your employer can always give you more work without more pay. I guess the real question starts to come, how equitable is that… if it ends up being sustained, then that company’s going to end up losing employees.”
— Josh Henderson, Founder, Denali HR
A short busy period is different from a permanent increase in workload. Sustained overload can make it difficult to retain employees. For non-exempt staff, additional work also means additional paid hours, with overtime after 40 hours in the workweek. Classify the role correctly before assigning a schedule on the assumption that salary covers all of it.
The salary has to hold up in slow weeks too. An exempt employee gets the full salary for any week in which they do any work. You can’t trim it because work wasn’t available (29 CFR 541.602).
When extra responsibility turns permanent, that’s usually a role change, and it deserves a pay conversation. Training time raises its own pay questions; see whether you have to pay employees for training time.
What classification mistakes should Utah employers check for?
Review these items annually and whenever a role’s duties or pay arrangement changes:
- Treating “salaried” as “exempt.” Salary is a pay method. Exempt status needs the $684 salary level and a duties test.
- Exempting a title instead of a job. An “operations manager” who supervises nobody doesn’t meet the executive test.
- Offering comp time. Private employers pay overtime in cash, not future days off.
- Moving the workweek around busy weeks. The workweek is fixed. Change it only permanently, and never to avoid overtime.
- Docking exempt pay in a slow week. Any work in the week means full salary.
- Using stale numbers. $844 and $1,128 are not current. As of October 2026, the level is $684 a week.
If you find a misclassified role, talk to your payroll provider or employment attorney before you switch it, including whether back overtime is owed.
Frequently Asked Questions
What is the FLSA salary threshold for exempt employees in 2026?
As of October 2026, the federal salary threshold for the white-collar exemption is $684 per week, or $35,568 a year. Highly compensated employees need at least $107,432 in total annual compensation, including at least $684 a week in salary. The higher 2024 thresholds were struck down in court, and the Labor Department removed them effective May 15, 2026. The employee’s duties must also pass a federal test.
Can a salaried employee be non-exempt?
Yes. Salary is a way of paying someone, not a classification. A salaried employee who earns less than $684 a week, or whose actual duties don’t meet an exemption test, is non-exempt and is owed overtime for hours worked over 40 in the workweek.
Does Utah have its own overtime law?
No. The Utah Labor Commission states that Utah has no overtime law, and Utah has no separate exemption test, so the federal Fair Labor Standards Act governs overtime for Utah employers. Overtime complaints go to the U.S. Department of Labor’s Wage and Hour Division, which has a Salt Lake City office.
Can a private employer give comp time instead of overtime pay?
No. Under federal rules, compensatory time off in place of overtime pay is limited to public agencies such as state and local governments. A private Utah employer has to pay non-exempt employees overtime for hours worked over 40 in the workweek.
Can you dock an exempt employee’s salary for a slow week?
Not because work wasn’t available. Under 29 CFR 541.602, an exempt employee receives the full salary for any week in which they do any work, and you can’t deduct for a slow week or for a jury-duty absence, although jury fees may be offset. If a slow season has you rethinking pay, get advice before changing anyone’s salary.
If a role’s classification is unclear, book a classification review before relying on an exemption in payroll. Our HR support and payroll services can help review the duties and pay arrangement. You can also call (801) 480-0002.
This article is general information, not legal or HR advice. Employment laws vary by jurisdiction and change over time, so consult a qualified professional before acting.
Sources
- Federal Register, 91 FR 27833 (May 15, 2026): removal of the 2024 overtime rule text
- eCFR, 29 CFR Part 541: white-collar exemptions
- eCFR, 29 CFR Part 778: overtime compensation
- Utah Labor Commission, Wage Claim FAQ
About the author: Josh Henderson is the founder of Denali HR, a Sandy, Utah PEO that provides payroll services, employee benefits administration, HR support and risk management for small and mid-sized businesses. Founded in 2019, Denali HR focuses on personalized HR support without the complexity of large PEO providers.
