Restoring Overtime Pay Act of 2026
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Restoring Overtime Pay Act of 2026 aims to update overtime pay rules for certain salaried employees. It establishes a minimum annual salary threshold of $45,000, which will increase annually, and eventually be tied to the 55th percentile of full-time salaried worker earnings nationwide. The bill also clarifies that employees performing nonexempt duties are not eligible for overtime pay if those duties are not directly related to executive, administrative, or professional roles.
Key provisions
- Establishes a minimum annual salary threshold of $45,000 for exempt employees, increasing annually.
- The salary threshold will eventually be linked to the 55th percentile of full-time salaried worker earnings.
- The Secretary of Labor will update the salary threshold annually based on Bureau of Labor Statistics data.
- Requires employers to compensate exempt employees on a salary basis.
- Clarifies that nonexempt duties do not qualify for overtime pay for exempt employees.
- The Bureau of Labor Statistics will publish weekly data on the earnings of full-time salaried workers.
- The Department of Labor will publish notice of revised salary thresholds.
- Allows for rulemaking to establish a salary threshold greater than the annual threshold.
Who is affected
- Employers
- Executive, administrative, and professional employees
- Salaried employees
Bill text
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Sponsors
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