On May 15, 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 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. The 2024 rule was invalidated by two district courts in late 2024.
2019 Salary Threshold Remains 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.
For More Information
For more information, see the PAYO Compliance Update, DOL Clarifies ‘White Collar’ Exemption Salary Threshold. Compliance updates are emailed to PayrollOrg members and are also available on the Compliance Updates webpage.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
