Employment laws and compliance requirements continue to evolve, and even seemingly minor regulatory updates can leave practice owners wondering whether they need to make changes to payroll or employee classifications.

Fortunately, the U.S. Department of Labor’s (DOL) latest action regarding overtime rules does not create any new compliance requirements for employers. Instead, it confirms what has already been in effect since late 2024.

What Changed?

On May 14, 2026, the DOL announced a technical amendment officially rescinding its 2024 Final Overtime Rule. This action removes the rule from the federal regulations and reinstates the overtime exemption salary thresholds that were in place before July 2024.

While this sounds like a significant change, it’s primarily an administrative update. Since a federal court struck down the 2024 rule in November 2024, employers have already been following the previous salary thresholds.

A Quick Refresher

The Fair Labor Standards Act (FLSA) requires most employees to receive overtime pay for hours worked over 40 in a workweek unless they qualify for an exemption. To be considered exempt under the executive, administrative, or professional (EAP) exemptions, employees must meet specific job duty requirements and earn at least a minimum salary.

The 2024 rule would have significantly increased those salary thresholds:

Executive, Administrative, and Professional (EAP) employees:

• From $35,568 annually ($684 per week) to $43,888 annually beginning July 1, 2024.
• Then to $58,656 annually beginning January 1, 2025.

Highly Compensated Employees (HCEs):

• From $107,432 to $132,964, with another increase planned to $151,164 in 2025.

The rule also would have introduced automatic salary threshold updates every three years.

According to the U.S. Department of Labor, on November 15, 2024, a federal district court vacated the rule, restoring the previous salary thresholds nationwide. The DOL later dismissed its appeal, and the May 2026 announcement simply formalized that decision.

What This Means for Dental Practices

Most dental practices employ a mix of hourly and salaried team members, including office managers, practice administrators, treatment coordinators, and billing personnel. If you classify any employees as exempt from overtime, this update serves as a good reminder to review those classifications.

For now, the minimum salary thresholds remain:

• $35,568 annually ($684 per week) for Executive, Administrative, and Professional employees.
• $107,432 annually for Highly Compensated Employees.

If your practice has been following these thresholds since late 2024, no additional action is required because of this announcement.

A Good Time for a Compliance Check

Although this update doesn’t require changes, it’s an excellent opportunity to review your payroll and HR practices. Questions to consider include:

• Are exempt employees properly classified based on both their salary and job duties?
• Are hourly employees accurately tracking and being paid for overtime?
• Have job descriptions been updated to reflect current responsibilities?
• Are your payroll processes keeping pace with changing employment laws?

Staying proactive can help reduce compliance risks and allow your team to stay focused on what matters most, providing exceptional patient care.