FLSA Overtime Reset Rule: What it Means in Simple Terms |
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The U.S. Department of Labor (DOL) recently made an official update to the overtime rules under the Fair Labor Standards Act (FLSA). In short, they have rolled things back to the 2019 salary thresholds after a newer rule was struck down in court.
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- In 2024, the DOL tried to raise the minimum salary required for certain employees to be exempt from overtime.
- However, federal courts blocked that rule in November 2024, saying the DOL went too far.
- As a result, the DOL has now officially removed that newer rule and restored the previous (2019) salary levels.
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This update was published in the Federal Register on May 15, 2026, and took effect immediately.
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What are the current salary thresholds? |
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- $684 per week (or $35,568 per year)
Minimum salary for most exempt employees (executive, administrative, and professional roles) - $107,432 per year
Minimum salary for “highly compensated employees”
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What does this mean for employers? |
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| For most employers, nothing really changes right now because:
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- The government was not enforcing the higher 2024 salary levels anyway after the courts blocked them.
- This update just makes it official in the regulations.
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However, it is still a good reminder that employees must meet all three tests to be exempt from overtime:
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Salary Basis Test: The employee must be paid a predetermined and fixed salary that is not subject to reduction based on the quality of or quantity of work performed.
- Salary Level Test: The employee's salary meets or exceeds the minimum threshold set by regulation.
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Duties Test: The employee's primary responsibilities must fall with specific categories such as executive, administrative, professional, or computer professional.
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The DOL’s action is mostly a cleanup step—it confirms that the overtime exemption rules are back to the 2019 levels, where they have effectively been since late 2024.
For more details, see the DOL’s Wage and Hour Division announcement (FLSA News Release tied to this rulemaking).
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