The Biden Administration’s Proposed Overtime Rule is Officially Dead

Back in 2024, the U.S. Department of Labor (DOL) under the Biden administration published a final rule, which would have dramatically raised the salary threshold for several exempt employees (the “Overtime Rule”). The Overtime Rule would have extended overtime eligibility to millions of employees in the United States and required increases of the salary threshold in phases. The first increase occurred in July 2024 and was set to be followed by an increase in January 2025 and every three years afterwards based upon inflation.

In November and December 2024, before the required January 2025 increase occurred, two separate federal courts vacated the Overtime Rule. The DOL under the Biden administration appealed the decisions, which left employers wondering about the future of the Overtime Rule. The appeals were dismissed on May 5 and May 7, 2026, ending the uncertainty.

On May 15, 2026, the DOL further ended the uncertainty by publishing a technical amendment which officially removed the Overtime Rule language from its regulations and restored the salary thresholds to their previous levels set in 2019. Accordingly, under the current law, exempt employees must be paid a salary of at least $684 per week, and highly compensated employees must be paid a salary of at least $107,432 annually. The amendment is effective immediately.

Employers should be mindful to always check individual state laws, as some states have salary thresholds that are above the federal threshold.

If you have remaining questions about the Overtime Rule or other labor and employment law issues, please contact Megan E. Bennett or another member of the Frantz Ward Labor and Employment Group.