Summary At A Glance
- The US DOL has restored the prior federal salary threshold for most executive, administrative, and professional exemptions under the FLSA to $684 per week, or $35,568 annually.
- The change follows court decisions vacating the DOL’s 2024 overtime rule and reinstates the 2019 regulatory standards, including the $107,432 annual compensation threshold for highly compensated employees.
- Employers should review exempt classifications, confirm compliance with federal and applicable state law, and monitor for future developments.
Background
On May 14, 2026, the US Department of Labor’s (DOL) Wage and Hour Division announced a technical amendment restoring the applicable regulations for the FLSA’s executive, administrative, and professional exemptions. The amendment removes the regulatory language from the DOL’s 2024 rule, which had been judicially vacated, and republishes the operative regulations established under the DOL’s 2019 rule. The amendment is effective immediately upon publication in the Federal Register.
The FLSA generally requires covered employers to pay employees at least the federal minimum wage for all hours worked and overtime at one and one-half times the employee’s regular rate of pay for hours worked over 40 in a workweek. However, certain employees may be exempt from minimum wage and overtime requirements if they meet the requirements for a recognized exemption.
What Changed?
The DOL’s technical amendment restores the federal salary threshold for most exempt executive, administrative, and professional employees to $684 per week. The regulations also restore the total annual compensation threshold for certain highly compensated employees to $107,432.
The amendment follows federal court decisions vacating the DOL’s 2024 overtime rule. According to the DOL, the technical amendment updates the Code of Federal Regulations to reflect those court rulings and reinstate the regulatory text that was in effect before the 2024 rule.
Importantly, the salary threshold is only one part of the exemption analysis. To qualify for most white collar exemptions, employees must generally satisfy the salary basis test, the salary level test, and the applicable duties test. Job titles alone do not determine exempt status.
What This Means for Employers
For many employers, this amendment confirms that the current federal salary threshold for most executive, administrative, and professional exemptions is $684 per week. Employers that had made changes in response to the now-vacated 2024 rule may want to review those changes and determine whether any additional action is needed.
Employers should proceed carefully before reclassifying employees or reducing salaries. Even though the federal salary threshold has been restored, employees must still meet the applicable duties requirements to be treated as exempt. In addition, some states and local jurisdictions may have higher salary thresholds or more protective wage and hour requirements. Where federal, state, or local law differs, employers must follow the standard that provides greater protection to employees.
Recommended Next Steps for Employers
To help maintain compliance, employers should:
- Review current exempt classifications to confirm employees satisfy the applicable salary basis, salary level, and duties tests.
- Identify any positions that were reclassified or adjusted in response to the 2024 overtime rule and determine whether further action is appropriate.
- Check state and local wage and hour requirements, including any higher salary thresholds or stricter exemption standards.
- Avoid relying on job titles alone when determining exempt status.
- Document the basis for exempt classifications, including salary and duties analysis.
- Train managers and payroll personnel on overtime eligibility, timekeeping expectations, and procedures for reporting hours worked.
- Consult employment counsel before making classification changes, salary reductions, or other adjustments that may affect employee pay or overtime eligibility.
How HR Works Can Help
Virtual HR Helpline subscribers receive two free FLSA Assessments each year (with the option to purchase additional assessments for a fee). The HR Helpline can be reached at hrhelp@hrworks-inc.com or by calling 888-668-1271. HR Strategic Services clients may contact their designated HR Consultant for additional guidance and assistance with these changes and/or to request FLSA Assessments.
Non-HR Works clients may contact us for HR solutions by calling toll-free at 1-877-219-9062 or by completing the contact us form on our website.
