Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

The salary threshold required for certain white-collar exemptions under the Fair Labor Standards Act (FLSA) is set at $455 per week. This amount translates to an annual salary of approximately $23,660. This threshold applies to specific job classifications, such as executive, administrative, and professional employees, who may be exempt from minimum wage and overtime pay provisions if their primary job duties meet the criteria outlined by the FLSA.

The specification of $455 per week is significant because it reflects a standard that has been in place for ensuring that only employees who earn a sufficient salary and fulfill certain job duties qualify for exemption. Employers must be aware of this threshold when determining whether an employee should be classified as exempt or non-exempt, which directly affects their eligibility for overtime wages.

Understanding that the other salary options listed fall below or are below this threshold is essential. Option choices such as $15.00/hour and $10.00/hour would not meet the criteria for exemptions, and a higher figure like $500/week exceeds the current stipulated threshold for white-collar exemptions. Therefore, knowing the correct threshold is crucial for both compliance with the law and proper payroll management.