DOL Officially Returns To 2019 Overtime Rule

On May 14, 2026, the U.S. Department of Labor (DOL) announced that it is rescinding the 2024 overtime rule adopted during President Biden’s administration that significantly increased the salary thresholds for “white-collar exemptions” to the Fair Labor Standard Act’s overtime requirements. As you may remember, the 2024 overtime rule, which entailed two staggered increases to the salary thresholds, was vacated and declared unlawful by a federal court in November 2024.  

Significantly, the Trump administration has decided not to issue a new rule and will instead return to the 2019 overtime rule. Thus, the salary thresholds we have been using since the court’s November 2024 decision will remain in effect: $684 per week for the executive, administrative and professional employee exemptions, and a total annual compensation threshold of $107,432 for the highly compensated employee exemption. This is good news for employers.

As always, the salary threshold is only one part of the overtime exemption test. Employers must also meet the equally important duties test for each exemption. If you have questions about this development or applying federal overtime exemptions, please contact a KZA attorney.  

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.