DOL final rule restores the 2019 overtime salary levels for exempt employees

Authority

U.S. Department of Labor, Wage and Hour Division

Status

Final rule

Effective

May 15, 2026

Affected

Employers that treat salaried employees as exempt from overtime under the executive, administrative, professional, outside sales, or computer employee exemptions (29 CFR Part 541).

What changed

The Department of Labor removed its 2024 overtime salary rule from the Code of Federal Regulations and restored the 2019 rule text. Two federal district courts in Texas had already vacated the 2024 rule, so this action makes the regulations match the court judgments. The salary increases the 2024 rule had scheduled, to $844 and then $1,128 per week, no longer apply.

The salary levels now in effect

• Standard salary level: $684 per week, or $35,568 per year for a full-year worker.
• Highly compensated employee: $107,432 in total annual compensation, including at least $684 per week paid on a salary or fee basis.
• Computer employees paid hourly: $27.63 per hour.

What employers should do

• Confirm that every employee you treat as exempt under these exemptions is paid at least $684 per week, and that the job duties still fit the exemption.
• Check your state's rules too. Some states set a higher salary level for exempt employees, and those still apply.
• If you raised salaries to meet the 2024 levels, review with your advisors before changing any pay, and keep records of the reasons.