DOL Formally Rescinds Biden-Era Overtime Rule

The U.S. Department of Labor (DOL) on Thursday, May 14, formally rescinded the 2024 federal rule that increased the salary thresholds for exempt status and determining overtime eligibility. In pulling the most recent standard, which was a key regulatory victory under the administration of then-President Joe Biden, the DOL formally reverted back to a 2019 standard that was enacted in the first administration of President Donald Trump.

The annual salary threshold for white-collar exemptions is now formalized at $35,568 per year ($684 per week). The 2024 rule had enacted a threshold of $58,656 in 2025, but judges in two U.S. district courts struck the change down in 2025 before it could go into effect. The DOL last week dropped the appeals of those two decisions with the U.S. Court of Appeals for the Fifth Circuit.

The May 14 action was technically titled a rule amendment and, as a result, did not go through the Federal Register public comment and notice period. A 13-page technical document, which spells out the details of the rescission and the requirements within the 2019 rule’s standard, was attributed to Andrew Rogers, the administrator of the DOL’s Wage and Hour Division (WHD). Because of the district court rulings, the WHD had already enforced the law at the 2019 standards.

The overtime rule is part of the Fair Labor Standards Act (FLSA), codified at 29 USC § 207. It requires covered employers to pay eligible employees one and a half times their regular rate for hours worked over 40 in a workweek. Employee eligibility is determined via a duties test, which accounts for job responsibilities rather than just title. The DOL’s regulations at 29 CFR Part 541 and 29 CFR Part 778 provide detailed definitions and exemptions.

While the federal law regarding overtime and exempt status is now clarified, employers should bear in mind that several states (e.g., New York, California) impose higher salary thresholds for exemption under state law. In these cases, employers must comply with the law that is more protective and beneficial for the employee.

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