Labor Department Reinstates 2019 Salary Thresholds for White-Collar Exemptions

The Labor Department is updating its regulations to put back the salary thresholds that were in place before 2024. In April 2024, the department raised the minimum salary required for certain office workers to qualify as exempt from overtime pay. Two federal courts in Texas ruled that the department overstepped its authority and ordered the 2024 rule thrown out. Those court orders are now final.

Why it matters: This is mostly an administrative cleanup. The salary threshold for overtime exemptions stays at $684 a week for now. Employers who already adjusted their payroll systems to the 2024 rule may need to revert those changes, while workers who were newly classified as exempt under the 2024 rule will return to their previous overtime status. The department has not announced plans to raise the threshold again, but it retains the authority to do so through a new rulemaking process in the future.

Who it affects

• Employers who classify office, professional, and administrative staff as exempt from overtime pay

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This action was published by the Department of Labor’s Wage and Hour Division in the Federal Register; employers and workers should review the full text before adjusting payroll practices.

Agency: Labor Department, Wage and Hour Division
Source: Federal Register — read the official document