Labor Department Reverses Course on Overtime Exemptions
Published Date: 5/15/2026
Rule
Summary
The Department of Labor is rolling back a 2024 rule about who counts as exempt from minimum wage and overtime pay, putting the old rules back in place starting May 15, 2026. This affects executive, administrative, professional, outside sales, and computer employees, making sure employers follow the previous standards. If you’re an employee or boss, expect no changes in pay rules for now, but keep an eye out for future updates!
Free Policy Watch
New rules are filed every week. Most people never see them.
Pick a topic. PRIA watches every federal rule and tells you when one hits your household.
Pick a topic to get started
Analyzed Economic Effects
5 provisions identified: 0 benefits, 0 costs, 5 mixed.
Pre-2024 Overtime Rules Restored
The Department of Labor says that, starting May 15, 2026, the rules that existed before the 2024 changes are back in force for who is exempt from minimum wage and overtime. If you are an employee or an employer, follow the pre-2024 part 541 rules for executive, administrative, professional, outside sales, and computer employees.
Standard Salary Level: $684/Week Restored
To be exempt as an executive, administrative, or professional employee under the restored rule, you must be paid at least $684 per week (equivalent to $1,368 biweekly, $1,482 semimonthly, or $2,964 monthly). Special territorial rates apply: $455 per week for the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands (nonfederal employers), and $380 per week for American Samoa (nonfederal employers).
Highly Compensated Employee Test: $107,432
The highly compensated employee (HCE) exemption is set at total annual compensation of at least $107,432 beginning January 1, 2020, and that total must include at least the $684-per-week amount paid on a salary or fee basis. Employers may count commissions, nondiscretionary bonuses, and other nondiscretionary pay toward the total, and may make a final payment within one month after the 52-week period to meet the $107,432 level.
Computer Employee Hourly Test: $27.63/hr
For computer employees, the restored rule allows the exemption to be met if the employee is paid at least $27.63 per hour (or is compensated on a salary/fee basis at the $684-per-week level).
Permitted Pay Arrangements Keep Exempt Status
The restored rules allow employers flexibility in how they meet the salary requirement: up to 10% of the required salary may come from nondiscretionary bonuses, incentives, and commissions; employers may make a one-time final payment after the 52-week period to reach required totals; a guaranteed weekly minimum plus extra pay does not break exempt status (example: a $725 guarantee still counts toward a $684 weekly requirement); and fee-basis work is tested by whether the fee equates to at least the weekly salary (example: $350 for 20 hours equals $700 and meets the $684 test).
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Take It Personal
Get Your Personalized Policy View
Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in