DOL Formally Pulls the Plug on the FLSA Salary Threshold Hike
By Al Vreeland - Lehr Middlebrooks Vreeland & Thompson, P.C.
May 15, 2026
On May 14, 2026, the Trump Department of Labor delivered on its promise to undo the Biden Administration’s hikes to the salary threshold for the white-collar overtime exemptions to the Fair Labor Standards Act.
In April 2024, the Biden DOL issued a regulation raising the salary threshold necessary to qualify for the white-collar exemptions from the overtime requirements of the FLSA. The hike was staged in two phases. On July 1, 2024, the threshold increased from $35,568 to $43,888; and on January 1, 2025, the threshold would increase further to $58,656.
Although there were immediate legal challenges, the July 2024 increase went into effect before courts could rule on the legitimacy of change. Therefore, most employers either increased exempt employees’ salaries to meet the new threshold or converted those employees to non-exempt and paid them overtime for hours worked over 40 in a workweek.
But before the second hike went into effect, a federal judge struck down both increases as beyond DOL’s authority under the FLSA. On its way out the door, the Biden DOL appealed in a bid to save the increase. The case has been on hold since – waiting on the Trump Administration to decide on its next move.
Fast forward to May 14, 2026, when the Trump DOL published notice that it was repealing the judicially-vacated 2024 increases completely – which returns us to the 2019 salary threshold of $35,569 ($684 per week). The notice explained that it was simply clarifying the law after the courts has struck down both increases, meaning that it will go into effect immediately without need for a public comment period.
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