Overview
- The Department of Labor, which announced the change Thursday, said the rescission takes effect May 15.
- The rule resets the white‑collar exemption test to $684 per week for executive, administrative, and professional employees and restores the highly compensated employee cutoff to $107,432 a year.
- Federal courts in Texas vacated the 2024 rule for overemphasizing salary levels over job duties, and the Fifth Circuit dismissed appeals on May 5 after the administration ended its defense.
- The agency framed the action as a technical amendment that conforms the Code of Federal Regulations to the court judgments and skipped new notice‑and‑comment rulemaking.
- The rollback removes the 2024 plan for automatic three‑year updates, and employers must still meet higher state thresholds in places like California and New York when classifying workers.