diff --git a/README.md b/README.md
index 43e8981..720ebe2 100644
--- a/README.md
+++ b/README.md
@@ -164,7 +164,7 @@ Failed API calls raise `LiveKit::ServerError`, which exposes the error `code`, m
 begin
   api.sip.create_sip_participant('trunk-id', '+15105550100', 'my-room', wait_until_answered: true)
 rescue LiveKit::SipCallError => e
-  puts e                 # e.g. "SIP call failed: 486 Busy Here (resource_exhausted)"
+  puts e                 # e.g. "SIP call failed: 486 Busy Here (failed_precondition)"
   puts e.sip_status_code # 486
 rescue LiveKit::ServerError => e
   puts e.code
diff --git a/spec/api/livekit_api_spec.rb b/spec/api/livekit_api_spec.rb
index ce28497..8afe235 100644
--- a/spec/api/livekit_api_spec.rb
+++ b/spec/api/livekit_api_spec.rb
@@ -268,7 +268,7 @@ def sip_error(sip, wait: false)
   it 'surfaces a busy signal as SipCallError' do
     e = sip_error({ 'code' => 486, 'status' => 'Busy Here' })
     expect(e).to be_a(LiveKit::ServerError)
-    expect(e.code).to eq('resource_exhausted')
+    expect(e.code).to eq('failed_precondition')
     expect(e.sip_status_code).to eq(486)
     expect(e.sip_status).to eq('Busy Here')
     expect(e.to_s).to include('486').and include('Busy Here')