On May 14, 2026, the U.S. Department of Labor (DOL) announced that it is formally rescinding the 2024 overtime rule that would have made potentially millions more white-collar workers eligible for overtime premium pay under the Fair Labor Standards Act (FLSA).

Quick Hits

• On May 14, 2026, the DOL announced that it is formally rescinding the Biden administration’s 2024 overtime rule, which was set to increase the white-collar exemption salary threshold to $1,128 per week, and the threshold for the highly compensated employee exemption to $151,164 per year, as of January 1, 2025.
• The rescission follows two federal court rulings in Texas that vacated the 2024 rule, with the Fifth Circuit dismissing the final appeal on May 5, 2026.
• For now, the executive, administrative, and professional exemption threshold remains $684 per week, and the highly compensated employee limit remains $107,432 annually, in accordance with the DOL’s 2019 rule.
• The rescission takes effect on May 15, 2026.

The DOL Wage and Hour Division unveiled a final rule to rescind the regulatory effects of the overtime rule, which would have raised the minimum salary for white-collar workers to be exempt from overtime pay, and restores the federal white-collar exemption thresholds established under a 2019 DOL rule.

The final rule, scheduled for publication in the Federal Register on May 15, 2026, essentially reverses the overtime expansion that would have occurred under the 2024 rule issued by the Biden...

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