119th (2025–2027)
S. 4551
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.