Restoring Overtime Pay Act of 2026
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Restoring Overtime Pay Act of 2026 aims to update overtime pay rules for 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 certain non-exempt duties are not considered part of executive, administrative, or professional roles, potentially impacting overtime eligibility.
Key provisions
- Establishes a minimum annual salary threshold of $45,000 for exempt employees, increasing annually.
- Links the salary threshold to the 55th percentile of full-time salaried worker earnings starting in 2030.
- Requires employers to compensate exempt employees on a salary basis or equivalent fee basis.
- Directs the Bureau of Labor Statistics to publish weekly earnings data for full-time salaried workers.
- Clarifies that certain non-exempt duties are not considered part of executive, administrative, or professional roles.
- Authorizes the Secretary to establish a salary threshold greater than the annual threshold, using a data-driven methodology.
- Provides for automatic annual updates to the salary threshold.
- Requires the Department of Labor to publish notice of revised salary thresholds.
Who is affected
- Employers
- Executive, administrative, and professional employees
Bill text
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28 on record
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