The U.S. Department of Labor (DOL) formally confirmed that the overtime exemption salary thresholds established under the first Trump administration’s 2019 overtime rule remain the governing federal standard.
On May 14, 2026, the DOL announced a technical amendment removing the Biden administration’s 2024 overtime regulation from the Code of Federal Regulations after federal courts invalidated the rule. The action officially restores the 2019 framework that has effectively been in force since the courts blocked the 2024 rule.
As a result, the salary threshold for most executive, administrative, and professional employees exempt from overtime under the Fair Labor Standards Act (FLSA) remains $684 per week, or $35,568 annually. The threshold for highly compensated employees remains $107,432 annually.
The Biden administration’s 2024 rule would have significantly expanded overtime eligibility by increasing the exempt salary threshold first to $43,888 and then to $58,656 annually, while also establishing automatic updates every three years. However, federal district courts in Texas struck down the rule, finding that the DOL had placed too much emphasis on salary levels rather than employees’ job duties when determining exemption status.
In announcing the technical amendment, the DOL characterized the action as a necessary correction to ensure that federal regulations accurately reflect the law following the court decisions. The DOL also withdrew its appeals of the adverse court rulings, signaling that it does not intend to revive the 2024 overtime framework.
For IEC member contractors and industry employers, the clarification provides welcome certainty after nearly two years of litigation and regulatory uncertainty. Companies may continue to rely on the 2019 salary thresholds when evaluating whether employees qualify for the FLSA’s white-collar exemptions, provided that all applicable duties tests are also satisfied.
Congressional Democrats Push for Higher Overtime Thresholds
Although the DOL has reaffirmed the Trump-era standard, congressional Democrats are pursuing legislation that would substantially increase overtime eligibility.
Senate Democrats recently introduced the Restoring Overtime Pay Act of 2026 (S. 4551), which would raise the salary threshold for exempt employees from the current $35,568 annually to $45,000 in 2026, followed by annual increases of $10,000. The threshold would reach $75,000 by 2029 and then be indexed beginning in 2030 to at least the 55th percentile of weekly earnings for full-time salaried workers.
The legislation would also preserve the secretary of labor’s authority to establish even higher thresholds through future notice-and-comment rulemaking.
While the bill faces uncertain prospects in the current Congress, it demonstrates that overtime policy remains an active issue in Washington. IEC member contractors and employers should continue monitoring both legislative proposals and future regulatory actions that could once again reshape overtime eligibility requirements.