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The U.S. Department of Labor (DOL) has announced a technical amendment to the Code of Federal Regulations (CFR) restoring the salary thresholds that govern the white-collar overtime exemptions under the Fair Labor Standards Act (FLSA). The amendment removes the now-vacated 2024 regulatory language that had significantly increased the salary thresholds and reinstates the thresholds that were in effect prior to the 2024 rule. The amendment was published in the Federal Register today, May 15, 2026, and is effective immediately upon publication.
Background
In April 2024, the Biden DOL issued a final rule that would have raised the standard salary level for the white-collar overtime exemptions to $844 per week as of July 1, 2024, and to $1,128 per week as of January 1, 2025, with automatic updates every three years thereafter. The 2024 rule also increased the annual threshold for highly compensated employees (HCEs) to $132,964 and, ultimately, to $151,164.
Two federal district courts in Texas vacated the 2024 rule in November 2024, holding that the DOL exceeded its authority in issuing the rule. Earlier this month, the Fifth Circuit dismissed the appeals in both of these cases.
After the November 2024 decisions vacating the rule, the DOL returned to enforcing the salary levels set out in the DOL’s 2019 regulation: $684 per week (equivalent to $35,568 annually) for executive, administrative, and professional employees, and $107,432 for highly compensated employees.
The WHD's technical amendment formalizes the regulatory clean-up by removing the vacated rule's language from the CFR and restoring the 2019 standards as the operative regulations.
What This Means for Employers
For most employers, the practical impact of this announcement will be limited, since the DOL has not been enforcing the 2024 salary levels since the decisions vacating them. However, the DOL’s announcement of the amendment reiterates that all three elements of the overtime exemptions (duties, salary basis, and salary level) must be satisfied. Employers may want to take this opportunity to evaluate their exempt classifications and ensure that exempt employees meet all three elements of the overtime exemptions. Employers should also remember that they must comply with state laws that impose higher minimum salary requirements for overtime exemptions.
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