The U.S. Department of Labor (DOL) has formally issued a technical amendment confirming that the 2024 federal overtime exemption rule is no longer in effect following multiple federal court rulings. The action restores the overtime exemption regulations that existed before July 2024. This rule effectively implements court judgments that vacated the Biden Administration’s 2024 overtime rule.  The now-vacated 2024 rule would have significantly increased the salary thresholds for “white collar” overtime exemptions under the Fair Labor Standards Act(FLSA). Instead, employers remain subject to the salary levels established in the 2019 rule.

Current Federal Salary Thresholds

The currently enforced federal exemption thresholds are:

The DOL’s 2024 rule had attempted to raise the standard salary threshold in two phases and then included automatic updates every three years. The DOL’s latest action does not create new policy; rather, it officially removes the invalidated 2024 regulatory language from the Code of Federal Regulations and reinstates the prior version.

Employers should review exempt classifications to ensure they align with the reinstated federal standards. Organizations that raised salaries solely to comply with the 2024 federal thresholds may now have additional flexibility, although state law requirements may still impose higher salary minimums.  Most importantly, employers should also remember that salary level alone does not determine exempt status, nor does a job title or written agreement between the parties. Employees generally must satisfy a) the salary basis and level test and b) the applicable duties test to qualify for exemption under the FLSA.  If you want assistance in ensuring you are compliant, feel free to contact a RKW employment attorney.