On May 15, 2026, the U.S. Department of Labor (DOL) issued a final rule to clarify the minimum salary level for the Fair Labor Standards Act (FLSA) executive, administrative, professional, outside sales, and computer employee (collectively referred to as EAP) or "white collar" exemptions [91 F.R. 27833, 5-15-26].
The final rule is a "technical amendment" that removes language in the regulations added by the DOL's 2024 rule that would have increased the salary thresholds, which was found to be invalid by two district courts in 2024.
2019 Salary Thresholds Remain in Effect
The technical amendment reinstates the salary thresholds from the DOL's 2019 rule: $684 per week ($35,568 per year) and $107,432 per year (including at least a $684 per week salary) for highly compensated employees. The technical amendment does not change any enforcement stance currently in place, as the DOL has applied the thresholds from the 2019 rule since the 2024 rule was vacated in November 2024.
Employers may use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10% of the standard salary level.
Change in the Rule May Still Come
On May 1, 2026, the DOL told a U.S. district court that the agency will have a final decision on the fate of the 2024 final rule by June 30 [Association of Christian Schools International v. U.S. Department of Labor, No. 1:24-cv-2618 (D.C., 5-1-26)]. The DOL told the court in a joint status report and motion to extend stay that the agency "has almost completed its decision-making process," and it will make a final decision upon a course of action by June 30.
It is uncertain whether the technical amendment is the DOL's final decision on the white collar threshold.
Exemption Tests Did Not Change
Bona fide EAP employees are exempt "white collar" employees under the FLSA. These employees are not covered by minimum wage, overtime, and certain recordkeeping requirements of the FLSA and are commonly referred to as being exempt.
The three tests for determining exempt status measure the actual duties and responsibilities of the employee, not the job title. To fall within the EAP exemption, employees generally must:
(1) Be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed (the salary basis test);
(2) Be paid at least a specified weekly salary level (the salary level test); and
(3) Primarily perform executive, administrative, or professional duties, as provided in the DOL regulations (the duties test).
U.S. Department of Labor, Wage and Hour Division
