Certified Payroll Professional Practice Exam 2026 - Free CPP Practice Questions and Study Guide

The minimum salary requirement for exempt employees, as defined by the Fair Labor Standards Act (FLSA), is indeed $455 per week. This threshold is essential for determining whether an employee qualifies for the exemption, which removes them from certain wage and hour regulations, such as overtime pay. The $455 figure is important because it reflects the federal guidelines that establish a clear baseline for salary levels necessary to classify employees as exempt.

Understanding this minimum salary requirement is crucial for employers to ensure compliance with labor laws and to avoid misclassification of employees that could lead to legal issues. By correctly applying this salary threshold, businesses can protect themselves from potential violations regarding overtime and minimum wage regulations, thus safeguarding both employee rights and company's financial standing.