The U.S. Department of Labor (DOL) has officially closed the book on a major overtime expansion, bringing its regulations in line with the reality employers have been navigating for months. On May 15, 2026, the DOL published a final rule in the form of a technical amendment that formally rescinded the already-vacated 2024 Biden-era overtime rule.
The 2024 regulation raised the overtime salary threshold for exempt executive, administrative, and professional employees to $844 per week ($43,888 annually) in July 2024 – with an additional increase to $1,128 per week ($58,656 annually) set to take effect in January 2025. The regulation also increased the total annual compensation threshold for the highly compensated employee (HCE) exemption to $132,964 in July 2024 and then to $151,164 in January 2025. By raising these salary thresholds, the 2024 regulation would have expanded overtime eligibility for white-collar employees.
But in late 2024, two federal district courts in Texas vacated the 2024 regulation on a nationwide basis, finding that the rule exceeded the agency’s statutory authority. These rulings wiped out both phases of the increase.
Against this backdrop, the DOL’s new rule was simply a technical correction accounting for changes in the law that have already occurred. This rule formalized the return to the pre-2024 thresholds and, as a technical amendment, did not require a public notice and comment period.
Employers should keep the following key considerations in mind:
- Previous 2019 thresholds remain in place. With the 2024 expansion formally reversed, the salary threshold for exempt executive, administrative, and professional employees officially remains $684 per week ($35,568 annualized). Additionally, the HCE threshold remains at $107,432 in total annual compensation, which must include at least $684 per week paid on a salary or fee basis.
- The salary threshold is only one part of the test. Earning above the minimum threshold does not automatically make an employee exempt. Employers must still ensure workers satisfy the “salary basis” test, being paid a fixed, predetermined sum each week, and the “duties test,” meaning their primary work involves exempt executive, administrative, or professional duties.
- Automatic triennial updates are removed. The vacated 2024 rule would have mandated automatic adjustments to the salary thresholds every three years based on up-to-date wage data. The new technical amendment officially strips these automatic updates from the regulations.
With wage and hour regulations continuing to evolve, employers should expect proper exemption classifications to remain a frequent source of workplace disputes and litigation. If you have questions about how these restored salary thresholds may affect your workplace policies or compliance obligations, please contact any K|W|W attorney.