What is the DOL overtime rule for 2026?

The Department of Labor's overtime rule sets the salary threshold below which most salaried employees are entitled to overtime pay under the Fair Labor Standards Act. The Biden-administration rule finalized April 2024 raised the threshold in two steps: $43,888 effective July 1, 2024, then $58,656 effective January 1, 2025, with automatic updates every three years.

In November 2024, the U.S. District Court for the Eastern District of Texas vacated the rule nationwide (Texas v. DOL), reverting the threshold to the prior $35,568 level set in 2019. The DOL's enforcement and any further rulemaking depend on the current administration's posture and any appellate action.

Practical 2026 guidance: confirm current threshold with DOL Wage and Hour Division before reclassifying employees. The threshold applies to the "white-collar" executive, administrative, and professional exemptions; it does not affect highly compensated employees ($107,432+) or duties tests. State law often imposes higher thresholds — California requires $66,560 for 2025 ($68,640 expected for 2026), New York requires $58,500 (NYC, Long Island, Westchester), Washington uses 2.0x state minimum wage.

Misclassification penalties include back overtime (up to two or three years), liquidated damages, and DOL civil penalties. Document your classification rationale in writing.