What Changed and Why It Matters
On May 15, 2026, the U.S. Department of Labor published a technical amendment in the Federal Register formally restoring the pre-2024 salary thresholds for the Fair Labor Standards Act's "white-collar" overtime exemptions — the executive, administrative, professional, outside sales, and computer employee exemptions. The standard salary threshold returns to $684 per week ($35,568 annualized), and the highly compensated employee threshold returns to $107,432 per year.
This reversal did not happen through a new rulemaking process weighing policy considerations. It happened because the 2024 final rule that raised these thresholds was struck down in federal court, and the DOL's May 2026 publication simply codifies that legal reality into the regulatory text employers and payroll systems reference.
Threshold History: 2019 Rule vs. 2024 Rule vs. Current
| Rule / Period | Standard Salary Threshold | HCE Threshold | Status |
|---|---|---|---|
| 2019 Rule (pre-2024) | $684/week ($35,568/yr) | $107,432/yr | Currently in effect |
| 2024 Rule — July 2024 | $844/week ($43,888/yr) | $132,964/yr | Vacated |
| 2024 Rule — January 2025 | $1,128/week ($58,656/yr) | $151,164/yr | Vacated |
| Current (restored, since May 15, 2026) | $684/week ($35,568/yr) | $107,432/yr | In effect |
What This Means for Exempt Classifications
Because the legal minimum salary for exemption is now lower than it would have been under the vacated 2024 rule, employers have more flexibility — not less — in classifying salaried employees as exempt from overtime, provided the duties test for the relevant exemption is also satisfied. Salary level alone has never been sufficient for exemption; the employee's actual job duties must still meet the specific requirements of the executive, administrative, professional, outside sales, or computer employee exemption being claimed.
Employers who raised salaries in 2024 or early 2025 specifically to comply with the now-vacated thresholds are not legally required to reduce those salaries. Doing so purely because the legal floor has moved back down carries employee-relations and retention risk that many employers may choose to avoid regardless of the technical legal minimum.