DOL Restores 2019 FLSA Overtime Thresholds: What Employers Must Know
What Happened
On May 14, 2026, the U.S. Department of Labor's Wage and Hour Division (WHD) published a technical amendment formally restoring the 2019 salary thresholds for the FLSA white collar overtime exemptions. This action rescinds the 2024 rule that had raised the thresholds, which was vacated by a federal court in Texas in November 2024. The DOL withdrew its appeal, making the reinstatement effective immediately upon Federal Register publication.
The restored thresholds are:
- Executive, Administrative, and Professional (EAP) employees: $684 per week ($35,568 per year)
- Highly Compensated Employees (HCE): $107,432 total annual compensation
These thresholds replace the 2024 rule's levels of $43,888/year for EAP and $132,964/year for HCE.
Why It Matters
The DOL's technical amendment provides formal certainty for employers, although the WHD had already been enforcing the 2019 levels since the vacatur. The rescission reduces compliance burdens for many organizations, but it does not eliminate the need for careful classification analysis. The salary threshold is only one part of the exemption test; the duties test and salary basis test still apply.
Employers must also consider state-specific requirements that may be more stringent. For example, California, Washington, and New York have higher state salary thresholds that continue to apply. The restored federal threshold does not preempt state law, so HR teams must navigate a patchwork of regulations.
This change comes amid ongoing HR compliance challenges, including new state pay transparency laws and AI in hiring regulations. The DOL's action simplifies one aspect of wage and hour compliance but reinforces the need for holistic compliance management.
What Organizations Should Do
- Review employee classifications – Ensure that employees classified as exempt under the EAP or HCE exemptions meet the restored salary threshold. If you adjusted salaries under the 2024 rule, you may revert them, but consider employee relations implications.
- Re-verify the duties test – The salary threshold is only one requirement. Confirm that each exempt employee's primary duties meet the executive, administrative, or professional criteria under the FLSA.
- Check state and local laws – Many states have their own overtime thresholds and duties tests. Comply with the highest applicable standard.
- Update payroll and policies – Adjust payroll systems to reflect the $684/week minimum. Update employee handbooks and classification documentation.
- Document your analysis – Maintain records of exemption determinations for each position, including salary basis and duties analysis, to defend against DOL audits or employee lawsuits.
For ongoing tracking of federal and state wage laws, consider using HR compliance tools that monitor regulatory changes. AIGovHub's HR compliance module provides automated updates on FLSA overtime rules, state salary thresholds, and pay transparency requirements, helping your organization stay compliant across multiple jurisdictions.
Related Resources
- EU AI Act Compliance Roadmap
- AI Talent Departures and Governance Gaps
- Microsoft Copilot Security Flaw Lessons
This content is for informational purposes only and does not constitute legal advice. Organizations should consult legal counsel for specific compliance questions.