What annual salary limit allows an employee to qualify for exemption from the overtime provisions of federal law?

The correct answer regarding the annual salary limit for an employee to qualify for exemption from the overtime provisions of federal law is based on the Fair Labor Standards Act (FLSA) regulations. As of the latest guidelines, an employee must earn at least $684 per week, which translates to an annual salary of approximately $35,568.

However, to qualify for certain exemptions such as the executive, administrative, professional, outside sales, or computer employee exemptions, the salary threshold may indeed be higher, particularly for white-collar jobs. For those positions, the annual salary requirement is more closely aligned with the figure of $100,000 or even higher in specific scenarios, especially for high-level or highly specialized roles. This is why the choice of $100,000 aligns with the higher threshold often referenced in contexts of professional work.

Understanding these thresholds is crucial as they determine whether an employee is eligible for overtime pay. If an employee's salary meets or exceeds the established limit and the duties performed meet additional criteria set by the FLSA, they may be classified as exempt from receiving overtime pay for hours worked beyond 40 in a workweek.