A bill to amend the Fair Labor Standards Act of 1938 to establish a minimum salary threshold for bona fide executive, administrative, and professional employees exempt from Federal overtime compensation requirements, and automatically update such threshold each year, and for other purposes.
About This Bill
Committee
Latest Action · May 18, 2026
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
The Restoring Overtime Pay Act of 2026 would increase the salary threshold that employers must pay exempt employees (executives, administrators, and professionals) to avoid giving them overtime pay. The bill sets an initial minimum salary of $45,000 per year, which would increase to $55,000 in 2027, $65,000 in 2028, and $75,000 in 2029. Starting in 2030, the threshold would automatically adjust every year based on the 55th percentile of weekly earnings for full-time salaried workers, as determined by the Bureau of Labor Statistics. Additionally, the bill limits the amount of non-executive work that exempt employees can perform, requiring at least 20 percent of their time be spent on exempt duties. The law would take effect approximately three months after enactment, affecting millions of workers across the country and potentially increasing labor costs for employers.
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