On May 15, 2026, the U.S. Department of Labor published a technical amendment in the Federal Register formally removing the vacated 2024 white-collar overtime rule from the Code of Federal Regulations. The amendment reinstates the 2019 regulatory text governing the Fair Labor Standards Act's executive, administrative, and professional (EAP) exemptions, as well as the highly compensated employee (HCE) exemption. The change took effect immediately upon publication, restoring a federal compensation framework that many employers had already moved away from in anticipation of the now-defunct 2024 rule.
Under the reinstated 2019 standards, the salary threshold for the EAP exemption returns to $684 per week, and the threshold for the HCE exemption reverts to $107,432 annually. These figures are once again the operative federal benchmarks for determining whether a salaried employee may be classified as exempt from the FLSA's overtime requirements, provided the applicable duties tests are also satisfied. The DOL characterized the action as a technical amendment, reflecting the prior judicial vacatur of the 2024 rule rather than a new substantive rulemaking.
The practical implications for employers are significant and immediate. Organizations that raised salaries, reclassified previously exempt employees as non-exempt, or restructured compensation policies in reliance on the higher thresholds contemplated by the 2024 rule should promptly reassess those decisions in light of the restored framework. While the 2019 thresholds set the federal floor, employers should not lose sight of the fact that some states impose their own, more demanding salary or duties requirements that continue to govern exemption classifications within those jurisdictions.
Recommended next steps include auditing current exemption classifications, reviewing pay practices and internal wage-and-hour policies, and evaluating whether prior salary increases should remain in place as a matter of retention, morale, or contractual commitment. Employers should also ensure that any employee communications regarding overtime eligibility are accurate and consistent with the operative federal and state standards. Documenting the basis for classification decisions remains a prudent safeguard in the event of agency inquiry or private litigation.
This article is provided for general informational purposes only and does not constitute legal advice. Employers should consult qualified counsel for guidance tailored to their specific circumstances and jurisdictions.