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On May 14th, 2026, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) announced it has officially rescinded the 2024 overtime exemption rules. Specifically, the WHD published a technical amendment to restore previous 2019 regulations that dictated overtime exemptions for executive, administrative, and professional employees under the Fair Labor Standards Act (FLSA). The rescinded overtime exemption rules were a “hot button” issue, as they were passed and scheduled to take effect in 2024. Eventually, the new rules were blocked and vacated by a Texas District Court judge. The recent action taken by the DOL officially “kills” that attempted 2024 revision.
Overview of the DOL’s Current Overtime Exemption Rules
As the nation’s primary wage law and one of the major employment laws employers must follow, the FLSA establishes minimum wage and overtime protections for non-exempt part-time and full-time employees. However, under section 13(a)(1) of the FLSA, employees paid above the FLSA’s current salary basis are generally exempt from overtime provisions. To qualify for overtime exemption under the now-restored 2019 rules, employees must be paid on a salary basis at a rate of at least $684 per week. These exempt employees must also perform at least one duty of an executive, administrative, or professional employee. Additionally, highly compensated employees (HCEs) are exempt from overtime pay if they earn $107,432 annually.
What Would the 2024 Overtime Exemption Changes Have Done?
Explicitly, the DOL’s final 2024 rule sought to increase the FLSA salary threshold for overtime exemption to $844 per week ($43,888 per year). This means that salaried employees who earn less than $43,888 would have been eligible for overtime pay. Correspondingly, the rule’s effective date was July 1st, 2024. On January 1st, 2025, under another overtime exemption rule, the overtime threshold would have increased to $1,128 per week ($58,656 annually).
Finally, the overtime threshold for highly compensated employees (HCEs) would have also changed. Beginning on July 1st, 2024, the annual compensation level for HCEs to be exempt from overtime pay increased from $107,432 to $132,964. On January 1st, 2025, that level would rise to $151,164.
Future salary and compensation level updates would have occurred every three years. Those updates would apply updated wage data to the regulations. The next three-year update was scheduled for July 1st, 2027.
What Does the Return to the Prior Overtime Exemption Rules Mean?
On November 15th, 2024, Texas District Court ruling vacated the January 2025 increase mentioned earlier. It also nullified the original July 1 salary threshold increase. This nullification, however, may not have affected employers that had already adjusted pay scales to comply with the proposed increase.
Overall, the new 2026 technical amendment officially removes the regulatory language of the 2024 rule from the Code of Federal Regulations. It also republishes the operative regulations of the prior overtime exemption rules issued in 2019. The restored regulations require that most exempt executive, administrative, and professional employees be paid at least $684 per week. The regulations also set a total annual compensation threshold of $107,432 for certain highly compensated employees.
Employer Takeaways
In conclusion, the technical amendment took effect immediately upon publication in the Federal Register on May 15th, 2026. For the most part, the DOL’s amendment does not change any currently enforced rules. Since the 2024 rule was vacated in November of that year, the WHD has applied the 2019 salary thresholds under the prior overtime exemption rules when investigating employers for wage violations. Significantly, according to the DOL, this technical amendment provides employers with verification of which FLSA overtime rules they must follow. Employers who have questions about the official reinstatement of prior overtime exemption rules should consult their legal counsel.
