The Department of Labor rescinded its 2024 final rule on overtime exemptions for executive, administrative, professional, outside sales, and computer employees on May 15, 2026. The action is largely technical, removing the rule's regulatory text from the Code of Federal Regulations following its November 2024 vacatur by the U.S. District Court for the Eastern District of Texas. The DOL had previously dropped its appeal of that decision.

LeadingAge had commented on the proposed rule in 2023, expressing concern that inadequate federal and state funding would limit member organizations' ability to absorb the rule's financial impact.

Shortly after the rescission, Sens. Sanders (D-VT) and Takano (D-CA) introduced S. 4551, the Restoring Overtime Pay Act of 2026. The bill would set the exempt salary threshold at $45,000 annually, increasing by $10,000 per year through 2030, when it would align with the 55th percentile of full-time salaried workers nationally — potentially reaching $98,000. The current threshold stands at $35,568. LeadingAge will continue monitoring developments on this legislation.