The Department of Labor (DOL) recently rescinded a rule that would have raised the salary threshold for white-collar workers to qualify for overtime.
The rule, which was issued by President Joe Biden’s administration in April 2024, would’ve raised the annual overtime salary threshold for executive, administrative, and professional (EAP) employees from $35,568 to $58,656. It was expected to extend overtime pay to 4 million additional workers, but it never took effect due to legal challenges; a federal judge blocked the regulation in November 2024.
On May 14 the DOL announced it was rescinding the 2024 overtime rule and restoring a 2019 rule for determining overtime. The overtime salary threshold for white-collar professionals remains at $684 per week, or $35,568 annually.
“Put simply, this action is a technical correction accounting for changes in the law that have already occurred,” the agency said in a technical amendment published in the Federal Register.
What this means for HR. The DOL’s recent decision was no surprise, as the agency previously indicated it was revisiting the Biden-era rule, and temporarily suspended its appeals in two cases challenging it.
This rescission shouldn’t change much for HR departments managing EAP employees, as the Wage and Hour Division has referred to the 2019 overtime standards since the Biden-era rule was struck down by the courts.
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