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DOL Technical Amendment Reinstates 2019 White-Collar Exemption Standards
Why This Matters
Although characterized as a technical amendment, the DOL’s action formally reinstates the 2019 salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar overtime exemptions following the collapse of the DOL’s 2024 overtime rule in federal court.
For many employers, the immediate operational impact may be limited because the DOL has not enforced the vacated 2024 thresholds since the Texas federal court decisions in late 2024. However, the amendment provides important clarity regarding the salary thresholds currently reflected in the Code of Federal Regulations and serves as a timely reminder for employers to review exempt employee classifications and related compensation practices.
What Changed
On May 15, 2026, the U.S. Department of Labor (DOL) published a technical amendment to the Code of Federal Regulations (CFR) restoring the salary thresholds for “white-collar” overtime exemptions under the Fair Labor Standards Act (FLSA) to the levels in effect prior to the DOL’s 2024 rule.
This amendment officially removes the vacated 2024 regulatory language from the CFR and reinstates the 2019 salary thresholds as operative federal standards. The amendment became effective immediately upon publication in the Federal Register.
Under the reinstated 2019 rule, the applicable salary thresholds are:
- $684 per week (or $35,568 annually) for executive, administrative, and professional employees; and
- $107,432 annually for highly compensated employees (HCEs).
How We Got Here
In April 2024, the Biden Administration’s DOL issued a final rule significantly raising the standard salary thresholds for the white-collar overtime exemptions:
- to $844 per week on July 1, 2024, and
- to $1,128 per week on January 1, 2025.
The rule also:
- increased the annual threshold for highly-compensated employees (HCEs) to $132,964, with a further increase to $151,164, and
- included automatic updates to thresholds every three years.
However, in November 2024, two federal district courts in Texas vacated the 2024 rule, finding that the DOL had exceeded its authority by placing too much emphasis on salary level rather than job duties.
In early May 2026, the DOL dropped its appeals, and the Fifth Circuit dismissed both cases, leaving the lower courts’ decisions in place and the DOL’s 2024 rule unenforceable.
Since the November 2024 court decisions, the DOL has continued enforcing the salary levels set by its 2019 regulation.
What the Technical Amendment Does in Practice
The Wage and Hour Division’s (WHD) technical amendment primarily serves as a regulatory clean-up measure. It formally removes the vacated 2024 rule’s language from the CFR and confirms the DOL’s return to the 2019 standards as the operative regulations.
In practice, this action aligns the text of the federal regulations with the DOL’s current enforcement posture following the Texas court decisions.
Practical Considerations for Employers
For most employers, the immediate impact of this amendment may be limited in light of the fact that the DOL has not enforced the 2024 salary thresholds since the federal district courts vacated the rule.
However, employers that previously (i) reclassified exempt employees to hourly/non-exempt or (ii) raised exempt employees’ salaries to comply with the 2024 rule may now wish to evaluate whether any compensation or classifications adjustments are appropriate moving forward.
While the DOL’s technical amendment itself does not require employers to reverse prior changes, it does serve as a timely reminder that all three elements of the white-collar overtime exemptions—duties test, salary basis, and salary level—must be met for employees to qualify as exempt from overtime requirements.
As a result, employers may wish to review their exempt employee classifications to ensure ongoing compliance with all three requirements.
Finally, employers should remain mindful that certain state laws and local ordinances impose higher minimum salary requirements for overtime exemptions beyond federal law. It is important to comply not only with federal standards but also with any applicable state/local regulations.
Key Takeaways
- The DOL has officially reverted to the 2019 salary thresholds for the FLSA’s white-collar overtime exemptions: $684/week for executive, administrative, and professional employees and $107,432/year for highly compensated employees.
- The DOL’s 2024 rule—intended to increase the salary thresholds—has been vacated and is no longer in effect.
- Employers may wish to consult with counsel to review employee classifications and state/local law requirements, and ensure compliance with all elements of the overtime exemptions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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