For employers, wage and hour compliance can feel like a moving target. Just when businesses begin adjusting policies and compensation structures to comply with a new regulation, the rules change again.
That is exactly what has happened with the U.S. Department of Labor’s overtime regulations.
On May 13, 2026, the Department of Labor (DOL) officially rescinded the 2024 overtime rule that would have significantly expanded overtime eligibility for many salaried employees. As a result, employers are now back to the salary threshold established during the first Trump Administration in 2019.
While the change may provide some relief for employers that were preparing for higher salary requirements, it does not eliminate the need for careful classification decisions. Employers must still ensure that exempt employees satisfy both the salary and duties requirements under the Fair Labor Standards Act (FLSA).
Let’s take a closer look at what changed, why it happened, and what employers should do next.