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Monday, May 25, 2026

Labor Department Proposes New Federal Overtime Salary Threshold - SHRM

The Department of Labor (DOL) has proposed an increase to the Fair Labor Standards Act's (FLSA's) annual salary-level threshold to $55,068 from $35,568 for white-collar exemptions to overtime requirements. The department also is proposing automatic increases every three years to the overtime threshold.

The proposed rule would, according to the DOL, do the following:

  • Restore and extend overtime protections to low-paid salaried workers. Many of these employees work side-by-side with hourly employees, doing the same tasks and often working over 40 hours a week.
  • Automatically update the salary threshold every three years to reflect current earnings data.
  • Restore overtime protections for U.S. territories. From 2004 until 2019, the department's regulations ensured that for U.S. territories where the federal minimum wage was applicable, so too was the overtime salary threshold. The department's proposed rule would return to that practice and ensure that workers in the U.S. territories subject to the federal minimum wage have the same overtime protections as other U.S. workers.

"We are committed to ensuring that all workers are paid fairly for their hard work," said Principal Deputy Wage and Hour Division Administrator Jessica Looman. "For too long, many low-paid salaried workers have been denied overtime pay, even though they often work long hours and perform much of the same work as their hourly counterparts. This proposed rule would ensure that more workers receive extra...



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