2026 Updated FLSA Regulation Full Impact Guide
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The 2026 FLSA threshold formula
An employee is exempt from overtime only if they pass all three tests: salary basis, salary level, and duties.
Formula = Exempt = (Salary >= $684/week OR $35,568/year) AND (Salary Basis Test Met) AND (Duties Test Met: Executive / Administrative / Professional / Outside Sales / Computer). Highly Compensated Employee (HCE) Threshold = $107,432/year.
The HCE threshold also reverted to $107,432/year. The 2024 rule had pushed HCE to $132,964/year — that’s gone.
Step-by-step: reclassifying a worker after the 2026 reset
Let’s say an administrative assistant earns $50,000/year on salary. Under the 2024 rule’s $1,128/week threshold ($58,656/year), she would have been non-exempt. Under the 2026 restored $684/week threshold ($35,568/year), she clears the salary level test — but she still has to pass the duties test.
- Salary level: $50,000 >= $35,568 (pass).
- Salary basis: paid on salary, not hourly (pass).
- Duties test: does she exercise discretion and independent judgment on matters of significance?
If her primary duty is routine data entry, scheduling, and following procedures — no, she fails the duties test. She’s non-exempt, even at $50K. If she manages a department, sets policy, and uses independent judgment, she passes. The flsa-overtime-eligibility-checker walks through the three-test analysis.
2026 real case: marketing coordinator reclassified twice
A buddy of mine is a marketing coordinator earning $52,000/year. In late 2024, when the threshold jumped to $1,128/week, her employer reclassified her as non-exempt and started tracking her hours. When the rule was vacated, they flipped her back to exempt — then the May 15, 2026 restoration confirmed she stays exempt on the salary test, but the duties test is what actually controls.
Her actual duties (writing copy from a brief, scheduling social posts, running reports) don’t meet the administrative duties test for exemption. So despite clearing the salary threshold, she should be non-exempt and eligible for OT. The employer’s been operating on the salary number alone, which is a compliance gap. The overtime-pay-calculator shows what her OT exposure looks like at her implied regular rate ($52,000 / 2,080 = $25/hr), and the time-and-a-half-calculator handles the 1.5x step.
For the bigger picture on who counts as exempt, our overtime-exempt-vs-non-exempt article breaks down the duties tests in detail. And for the salaried-but-non-exempt corner case, do-salaried-employees-get-overtime clarifies the rule.
2026 FLSA threshold timeline
| Date | Standard Salary Threshold | HCE Threshold | Status |
|---|---|---|---|
| Pre-2024 (2019-2024) | $684/week ($35,568/yr) | $107,432/yr | In effect |
| July 1, 2024 | $844/week ($43,888/yr) | $132,964/yr | Briefly in effect |
| Jan 1, 2025 (planned) | $1,128/week ($58,656/yr) | $151,164/yr | Vacated Nov 15, 2024 |
| Nov 15, 2024 | Rule vacated | Rule vacated | Reverted to 2019 levels |
| May 15, 2026 | $684/week ($35,568/yr) | $107,432/yr | Formally restored |
So what does that mean for you? If a worker was reclassified as non-exempt in 2024 because their salary fell under $844 or $1,128/week, they may now clear the $684/week salary test — but the duties test still has to pass. Re-audit, don’t assume.
Frequently Asked Questions
What is the 2026 FLSA salary threshold for overtime exemption?
The standard salary threshold is $684 per week, or $35,568 per year, restored on May 15, 2026. The highly compensated employee threshold is $107,432 per year. The 2024 rule that pushed the threshold to $844 and then $1,128/week was vacated in November 2024 and formally rescinded.
Did the FLSA threshold go up or down in 2026?
It went down, back to the pre-2024 level. The 2024 rule had raised the threshold to $844/week and scheduled another increase to $1,128/week. After the November 2024 court vacatur and the May 2026 restoration, the threshold returned to $684/week.
If an employee earns more than $35,568, are they automatically exempt?
No. The salary level is just one of three tests. The employee must also be paid on a salary basis (not hourly) and pass the duties test for executive, administrative, professional, computer, or outside sales exemption. Failing any test means non-exempt status and OT eligibility.
What should employers do after the May 15, 2026 restoration?
Re-audit every position that was reclassified during the 2024 rule. Workers who became non-exempt at the $844 or $1,128 threshold may now pass the salary level test at $684, but they still must pass the duties test. Don’t assume salary alone makes someone exempt.
The bottom line
The 2026 FLSA restoration reset the salary threshold to $684/week and the HCE threshold to $107,432/year — but the duties test still controls most exemption decisions. Run every borderline position through the flsa-overtime-eligibility-checker and you’ll catch the misclassifications before DOL does.