DOL Rescinds 2024 Overtime Rule, Reinstates 2019 Salary Threshold
The U.S. Department of Labor has officially rescinded the 2024 overtime rule, restoring the prior salary threshold for overtime pay.
Why it matters: Employers and legal advisors must revisit wage policies and overtime eligibility, as the federal salary threshold returns to its 2019 level. States with higher standards remain unaffected, making careful compliance essential across jurisdictions.
- DOL rescinded the 2024 overtime rule on May 14, 2026, formally ending its provisions.
- The rescission restores the $684/week salary threshold for white-collar exemptions set by the 2019 regulations.
- Planned increases to $844/week (July 2024) and $1,128/week (January 2025) are nullified.
- States like Washington with higher salary thresholds still enforce their stricter standards.
The U.S. Department of Labor (DOL) on May 14, 2026, formally rescinded the 2024 overtime rule that sought to expand overtime eligibility under the Fair Labor Standards Act. The rule, which had increased the salary threshold for white-collar exemptions to $844 per week effective July 1, 2024, and planned a further hike to $1,128 per week by January 1, 2025, is now officially nullified.
- Federal court decisions in late 2024 made the 2024 rule unenforceable before the full scheduled increase could occur.
- The DOL's action restores the previous $684 per week threshold, established in the 2019 regulations, as the federal standard for overtime-exempt status.
- This change requires employers and legal professionals to once again review FLSA classifications and wage policies to ensure compliance with the reinstated rules.
- State law still prevails where it sets a higher salary basis for exemption. For example, Washington employers must continue following their state’s elevated salary thresholds, regardless of the federal rollback.
As the regulatory landscape shifts, legal teams should reassess compliance approaches and communicate new expectations to clients and business units. The DOL has emphasized ongoing scrutiny of employee classification under FLSA, as Acting Secretary of Labor Julie Su noted, "Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections." (US Department of Labor)
Staying attuned to both state and federal requirements is critical as compensation rules continue to evolve.
By the numbers:
- $684/week — Current federal salary threshold (2019 rule, restored)
- $844/week — Threshold set by the rescinded 2024 rule (would have begun July 2024)
- $1,128/week — Planned but never-implemented increase for January 2025