U.S. Department of Labor Reinstates 2019 Salary Thresholds for Exempt Employees
Regulations promulgated by the U.S. Department of Labor (“DOL”) require executive, administrative, and professional employees to be paid at least a minimum salary amount to be exempt from the Fair Labor Standards Act’s (“FLSA’s”) minimum wage and overtime requirements. A 2019 DOL regulation set the salary threshold for the executive, administrative, and professional exemptions (also called the “white-collar” exemptions) at $684 per week. The 2019 regulation also established a salary requirement of $107,432 per year, including at least $684 per week paid on a salary or fee basis, for highly compensated employees.
In 2024, the DOL established new salary requirements for exempt employees, increasing the threshold to $844 per week for the white-collar exemptions and $132,964 per year for highly compensated employees. The new salary thresholds were subsequently challenged in court, and the resulting litigation led to the vacatur of the 2024 salary thresholds. Consistent with the outcome of the litigation, the DOL issued a technical amendment in May 2026 formally reinstating the salary thresholds established by the 2019 regulation.
Consequently, employers should look to the 2019 regulation when establishing salary thresholds for exempt employees. However, salary alone does not determine exempt status under the FLSA. Employers must also evaluate whether employees meet the relevant duties tests set forth in the federal regulations. For employee classification questions, please contact a Labor & Employment Law attorney at Appel Yost.
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