On May 15, 2026, the U.S. Department of Labor published a technical amendment in the Federal Register formally rescinding the 2024 Biden-era overtime rule issued under the Fair Labor Standards Act (FLSA). The amendment reinstates the prior salary threshold of $684 per week, or $35,568 annually, as the operative standard for the FLSA white-collar exemptions. That threshold, originally established during President Trump's first term, once again governs whether executive, administrative, and professional employees may be properly classified as exempt from federal overtime requirements.
The 2024 rule had implemented phased increases to the minimum salary required for exempt status, along with an automatic updating mechanism. With the rescission now effective, those increases are no longer operative, and employers must look to the reinstated $684 weekly threshold when evaluating whether salaried employees qualify for the white-collar exemptions. The duties tests applicable to the executive, administrative, and professional exemptions remain unchanged and continue to apply alongside the salary basis and salary level requirements.
For U.S. employers, the practical implications are significant and time-sensitive. Organizations that previously raised salaries, reclassified employees as non-exempt, or restructured compensation practices in anticipation of the higher thresholds contemplated by the 2024 rule should now reassess those decisions in light of the restored standard. Employers should review current exempt classifications to confirm that affected employees continue to satisfy both the reinstated salary threshold and the applicable duties tests. Payroll systems, timekeeping practices, offer letters, and internal compensation policies should be examined for consistency with the reinstated framework.
Employers operating in multiple jurisdictions should also remain attentive to state and local wage and hour laws, which in many cases impose salary thresholds and exemption criteria more demanding than the FLSA. Where state requirements are stricter, those requirements continue to control. Communications to affected employees regarding any classification or compensation changes should be planned carefully to minimize confusion and legal risk.
This update is provided for general informational purposes only and does not constitute legal advice. Employers should consult qualified counsel for guidance tailored to their specific workforce, jurisdictions, and compensation practices.