Today, May 14, 2026, the Department of Labor is vacating a proposed 2024 rule that was intended to expand overtime eligibility for millions of workers across the country.
The Fair Labor Standards Act (FLSA) requires covered employers to pay at least the federal minimum wage for all hours worked and overtime at one and one-half times an employee’s regular rate for hours worked over 40 in a workweek. It also provides several exemptions from these wage and hour requirements, the most common of which are the so-called “white collar” or “EAP” exemptions for executive, administrative, and professional employees.
In order to claim the EAP exemption, employers are required to pay at least the salary threshold set by the DOL’s rules. The 2024 rule has now officially been vacated, leaving the 2019 rule in place.
The Vacated 2024 Rule
The 2024 rule sought to raise salary thresholds in two stages, with the highest-level set at $1,128 per week, or $58,656 annually. Four lawsuits challenged the rule, and on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated it in Texas v. U.S. Dep’t of Labor.
The regulatory text from this rule has been removed from the Code of Federal Regulations and replaced by the 2019 rule as it was in effect before the 2024 rule took effect.
The Reinstated 2019 Rule
Under the now-reinstated 2019 rule the standard salary threshold is $684 per week, or $35,568 annually for a full-time worker, and the highly compensated employee total annual compensation threshold is $107,432, with at least $684 per week paid on a salary or fee basis.
Implications
Any employer who has increased salaries or converted exempt employees to non-exempt in an effort to follow the 2024 rule is free to change this, so long as it meets the requirements of the 2019 rule. However, it is vital to consult state law before any changes are made.
The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in labor and employment matters for over sixty years and are available to discuss these issues and others. As always, the foregoing is for informational purposes only and does not constitute legal advice regarding any particular situation as every situation must be evaluated on its own facts. The choice of a lawyer is an important decision and should not be based solely on advertisements.
