What does Preamble of Restoring Overtime Pay Act of 2026 do?

This bill proposes amendments to the Fair Labor Standards Act of 1938. The proposed changes aim to establish a minimum salary threshold for certain employees (executive, administrative, and professional) who are currently exempt from federal overtime compensation requirements. The bill also includes a provision for automatically updating this salary threshold each year.

What does SHORT TITLE. of Restoring Overtime Pay Act of 2026 do?

This bill is formally titled the Restoring Overtime Pay Act of 2026.

What does MINIMUM SALARY THRESHOLD FOR BONA FIDE EXECUTIVE, of Restoring Overtime Pay Act of 2026 do?

This section amends the Fair Labor Standards Act of 1938 to establish a minimum salary threshold for employees exempt from federal overtime compensation requirements. Beginning on the effective date of the Restoring Overtime Pay Act of 2026, the Secretary of Labor will require a minimum weekly salary rate for exempt employees. The initial minimum annualized salary threshold is set at $45,000, increasing to $55,000 on January 1, 2027, $65,000 on January 1, 2028, and $75,000 on January 1, 2029. Starting January 1, 2030, the threshold will be based on the 55th percentile of weekly earnings of full-time salaried workers nationally, as determined by the Bureau of Labor Statistics. The Secretary has the authority to establish a higher salary threshold through rulemaking. The salary threshold will be automatically updated annually, beginning one year after the initial threshold takes effect, to reflect the 55th percentile of weekly earnings. The Bureau of Labor Statistics is required to publish weekly earnings data by census region.

What does NONEXEMPT DUTIES LIMIT FOR BONA FIDE EXECUTIVE, ADMINISTRATIVE, of Restoring Overtime Pay Act of 2026 do?

This section amends Section 13(a)(1) of the Fair Labor Standards Act of 1938. The amendment removes the exclusion for employees of retail or service establishments. The phrase 'because of' and subsequent text through 'administrative activities' is removed. The minimum salary requirement for nonexempt duties is changed from 'less than 40' to 'not less than 20'. The amendment modifies the definition of 'such activities' to 'activities not directly or closely related to the performance of executive or administrative activities'.

What does EFFECTIVE DATE. of Restoring Overtime Pay Act of 2026 do?

This Act will become effective on the first day of the third month following its enactment. The amendments made by this Act will also take effect on the same date.

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Restoring Overtime Pay Act of 2026

Last updated: 5/15/2026 · Introduced: 5/15/2026

Author: Mark Takano (D-CA)

TL;DR (AI)

This bill establishes a tiered minimum annual salary of $45,000 initially, increasing to $75,000 by 2029, for certain employees (executive, administrative, and professional) currently exempt from overtime pay.
Beginning in 2030, the salary threshold will automatically adjust annually to reflect the 55th percentile of weekly earnings for full-time salaried workers, as determined by the Bureau of Labor Statistics.
The bill modifies the Fair Labor Standards Act to remove certain exclusions and lower the minimum salary requirement for performing non-exempt duties.

119th Congressin committeeS. 4551(In Committee)Official page

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Includes provisions on preamble, short title., and 3 more.

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