DOL Restores 2019 Salary Thresholds for Executive, Administrative, and Professional Employee Exemptions

By Brook T. Barnes and Hannah Schnell

On May 14, 2026, the Wage and Hour Division of the U.S. Department of Labor (DOL) published a technical amendment restoring the regulations governing exemptions for executive, administrative, and professional employees under the Fair Labor Standards Act (FLSA). This alert summarizes the key changes and what they mean for employers.

What Happened

The DOL’s technical amendment removes regulatory language from a 2024 Code of Federal Regulations (CFR) rule that was judicially vacated and republishes in its place the operative regulations that were established in the DOL’s 2019 Final Rule. In practical terms, this action is a technical correction accounting for changes in the law that have already occurred because of federal court decisions.

The 2024 rule had sought to raise the standard salary level for exempt employees to $844 per week effective July 1, 2024, with a further increase to $1,128 per week on January 1, 2025, and had also provided for automatic triennial updates to these earnings thresholds. Multiple federal lawsuits challenged the 2024 rule, and on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the rule, followed by a similar order from the U.S. District Court for the Northern District of Texas on December 30, 2024. These orders became final following the dismissal of the respective appeals by the U.S. Court of Appeals for the Fifth Circuit on May 5 and 7, 2026.

What the Restored Regulations Require

The technical amendment reinstates the salary and compensation thresholds set by the 2019 Final Rule, which took effect on January 1, 2020. Under the restored regulations, for an employee to qualify as exempt from the FLSA’s minimum wage and overtime requirements under the executive, administrative, or professional exemptions, the employee must satisfy each of the following three tests: (1) the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (the “duties test”); (2) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the “salary basis test”); and (3) the amount of salary paid must meet a minimum specified amount (the “salary level test”).

The restored standard salary level is $684 per week (equivalent to $35,568 per year for a full-year worker). For certain highly compensated employees, the restored total annual compensation threshold is $107,432 per year, of which at least $684 per week must be paid on a salary or fee basis. An employee earning at least $107,432 annually is deemed exempt if the employee customarily and regularly performs any one or more of the exempt duties of an executive, administrative, or professional employee.

In addition, under the restored regulations, up to ten percent of the standard salary amount may be satisfied by the payment of nondiscretionary bonuses, incentives, and commissions that are paid annually or more frequently. For computer employees, the salary requirement may alternatively be met by compensation at an hourly rate of not less than $27.63 per hour. The salary basis and salary level tests do not apply to doctors, lawyers, teachers, and outside sales employees.

For employers in the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, or the U.S. Virgin Islands (other than the federal government), the minimum salary level is $455 per week. For employers in American Samoa (other than the federal government), the minimum salary level is $380 per week.

When the Amendment Takes Effect

This technical amendment is effective immediately upon publication in the Federal Register because it restores the regulation to reflect the already operative court orders. The DOL determined that a delayed effective date was unnecessary because the court orders vacating the 2024 rule are now operative. Any delay could mislead employees and employers who consult the CFR to learn about their rights and responsibilities under the FLSA.

Which Employers Does This Apply To

The FLSA’s overtime and minimum wage requirements—and correspondingly, the executive, administrative, and professional exemptions—apply to employers engaged in interstate commerce or in the production of goods for commerce, as well as to employees of enterprises meeting the FLSA’s coverage thresholds. In practical terms, the restored regulations apply broadly to virtually all private-sector employers of meaningful size, as well as to federal, state, and local government employers. Any employer that classifies employees as exempt under the FLSA’s “white collar” exemptions must ensure that those employees satisfy the duties, salary basis, and salary level requirements restored by this technical amendment.

State or Local Law May Impose Additional Requirements

Employers should be aware that many states and localities have their own wage and hour laws that may impose higher salary thresholds or different duties tests for overtime exemptions. For example, several states already require minimum salaries for exempt employees that exceed the federal $684 per week threshold. Where state or local law provides greater protections to employees than the FLSA, the more protective standard applies. Accordingly, compliance with the restored federal regulations alone may not be sufficient; employers must also ensure they satisfy any applicable state or local requirements.

Recommended Next Steps

Employers should consult with qualified employment counsel to review their current exempt classifications and compensation levels and determine whether they are complying with the restored federal regulations and any applicable state or local laws. Employers may also wish to take advantage of the DOL’s PAID program, which offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA.

***Opinions expressed are those of the authors and not necessarily the firm’s or their colleagues’.