Careers

Diversity, Equity & Inclusion

Experience

Innovation

Interactive Maps

Locations

About

Pages

Meet our team of innovators
Ask us how we do it

Professionals

Insights

Services

Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 11 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

Home | Thompson Hine LLP

Atlanta

Chicago

Cincinnati

Cleveland

Columbus

Dayton

Los Angeles

Minneapolis

New York

Silicon Valley

Washington, D.C.

On May 14, the U.S. Department of Labor (DOL) officially rolled back its 2024 overtime rule, publishing a “technical amendment” that restores the 2019 salary thresholds for exempt employees. This change applies immediately, without notice or comment, in light of court rulings invalidating the Biden-era 2024 overtime rule.

contentpilot/introduction

core/heading

The Fair Labor Standards Act (FLSA) requires covered employers to pay overtime to most workers. However, bona fide executive, administrative, or professional employees, as well as those in outside sales positions and highly skilled computer professionals, are exempt from overtime requirements if their job duties comply with certain definitions within the FLSA and they earn above a minimum salary threshold.

core/paragraph

In 2019, the DOL set the minimum exempt salary at $684 per week ($35,568 per year). The threshold for highly compensated employees (HCEs) was set at $107,432 per year. These thresholds took effect January 1, 2020.

The DOL’s April 2024 rule raised these salary thresholds, increasing the threshold for exempt employees, first to $844 per week ($132,964 annually) on July 1, 2024, and then to $1,128 per week ($151,164 annually) on January 1, 2025. It also added automatic updates every three years.

In late 2024, federal district courts in Texas struck down the 2024 rule. This month, those rulings became final after appeals were dismissed.

The DOL’s “new rule” simply confirms what the Texas district courts decided: that the 2024 rule was invalid. And no notice and comment period preceded the change because the DOL considers this a technical fix.

The 2019 thresholds that are back in effect (for now):

Standard salary: $684 per week ($35,568 per year)

core/list-item

Computer professionals: $27.63 per hour (as an alternative to a salary threshold)

Bonuses: Up to 10% of the salary threshold can be met through bonuses or commissions paid at least once per year

core/list

The automatic updates from the 2024 rule are gone; however, the DOL has said it may propose new rules in the future.

Review pay structures. Employers should review the salaries of employees who may be impacted by the threshold changes to make sure workers are classified appropriately as exempt or non-exempt. If an employer raised an employee’s salary to maintain the employee’s exempt status in compliance with the 2024 rule, the employer may, but is not required to, adjust the employee’s salary.

Consider reclassifying workers. If an employer classified an employee as non-exempt because they did not meet the heightened salary requirements for exempt status set forth in the 2024 rule, the employer may reconsider that non-exempt classification. However, the employer should ensure that the employee otherwise meets the duties and salary basis tests for exempt status. Employers should be thoughtful about communicating any changes, as employee relations issues may arise, for example, if eliminating overtime eligibility will result in a reduction in the overall compensation the employee is accustomed to receiving.

Watch for new rules. The DOL may issue new overtime rules in the future. Employers should stay alert for updates.

Check state and local laws. Some states and cities have higher salary thresholds than federal law. Meeting federal requirements may not be enough in those locations.

core/separator

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2026/05/Labor-Employment-Alert-DOL-Restores-Prior-Overtime-Salary-Thresholds.pdf

The Old Rule Is Now the New Rule: DOL Restores Prior Overtime Salary Thresholds

Services