The U.S. Department of Labor rescinded the 2024 overtime rule effective May 15, 2026, republishing the 2019 FLSA regulations. The salary threshold for exempt employees returns to $684/week ($35,568/yr) and the highly-compensated-employee level to $107,432, reversing scheduled increases.
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DOL restores pre-2024 overtime salary thresholds effective May 15, 2026
Why this matters for founders
Re-check salaried staff against the $684/week bar—the lower threshold means fewer employees are automatically overtime-eligible, but misclassification still carries back-pay risk.
Source: Genova Burns LLC
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