Restoring Overtime Pay Act of 2026

Key Points

• The bill raises the salary threshold below which salaried workers must receive overtime pay. It starts at $45,000 and increases annually to $55,000 in 2027, $65,000 in 2028, and $75,000 in 2029. This would make millions of currently exempt managers, office workers, and professionals eligible for time-and-a-half pay when they work more than 40 hours a week.
• Starting in 2030, the salary threshold would automatically update each year to match the 55th percentile of weekly earnings for full-time salaried workers nationwide. This ensures the threshold keeps pace with rising wages and does not erode over time the way past thresholds have.
• The bill also limits how much non-managerial work an exempt employee can do. Workers could not spend more than 20% of their time on tasks unrelated to executive or administrative duties and still be classified as exempt. This targets the common practice of giving someone a "manager" title to avoid paying overtime while they mostly do the same work as hourly employees.
• The bill was introduced by Sanders with 26 Democratic co-sponsors and referred to the Senate HELP Committee. If enacted, the changes would take effect on the first day of the third month after the bill becomes law, giving employers a short window to adjust pay practices.