Restoring Overtime Pay Act of 2026
Sponsored By: Representative Takano, Mark [D-CA-39]
Introduced
Summary
Raises and automates the salary floor that determines who is eligible for federal overtime pay. This bill would set step-up salary minimums for white-collar exemptions and rewrite duties rules so fewer salaried workers miss overtime protections.
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- Workers and households: Would expand overtime eligibility for many salaried workers by setting a minimum salary that starts at $45,000 and rises to $75,000 by 2029.
- Employers and job classifications: Would change the exemption duties test by removing certain retail and service qualifiers, changing the hours threshold to "not less than 20", and redefining covered activities as those not directly or closely related to executive or administrative work.
- Data and updates: Would require the Bureau of Labor Statistics to post weekly earnings by census region within 21 days after each quarter and would peg annual threshold updates to the 55th percentile of weekly earnings, while allowing the Secretary to set a higher threshold through rulemaking.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Higher salary cutoff for overtime
If enacted, this bill would set minimum yearly pay levels that decide who is exempt from overtime. The cutoffs would be $45,000 on the Act’s effective date; $55,000 on Jan 1, 2027; $65,000 on Jan 1, 2028; and $75,000 on Jan 1, 2029. Starting Jan 1, 2030 the cutoff would equal the 55th percentile of full-time salaried weekly earnings based on BLS Q2 2029 data. The Labor Department would update the number each year, could set a higher amount by rule, and must announce changes 60 days before they start. The Bureau of Labor Statistics would publish weekly salaried earnings by census region within 21 days after each quarter ends.
New duties test for overtime
If enacted, the bill would change the words courts and employers use to decide executive, administrative, and professional exemptions. It would remove some retail and service qualifiers, change an hours phrase from "less than 40" to "not less than 20", and redefine the activities test as activities not directly or closely related to executive or administrative work. These edits would alter who counts as exempt when the salary cutoff is met; some workers could gain overtime pay while others could lose it depending on job duties. The changes would take effect on the first day of the third month after enactment.
Sponsors & CoSponsors
Sponsor
Takano, Mark [D-CA-39]
CA • D
Cosponsors
Rep. Adams, Alma S. [D-NC-12]
NC • D
Sponsored 5/15/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 5/15/2026
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 5/15/2026
Rep. Scanlon, Mary Gay [D-PA-5]
PA • D
Sponsored 5/15/2026
Rep. Frost, Maxwell [D-FL-10]
FL • D
Sponsored 5/15/2026
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 5/15/2026
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 5/15/2026
Rep. Simon, Lateefah [D-CA-12]
CA • D
Sponsored 5/15/2026
Rep. Hayes, Jahana [D-CT-5]
CT • D
Sponsored 5/15/2026
Rep. Mannion, John W. [D-NY-22]
NY • D
Sponsored 5/15/2026
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 5/15/2026
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Sponsored 5/15/2026
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 5/15/2026
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 5/15/2026
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 5/15/2026
Rep. Dingell, Debbie [D-MI-6]
MI • D
Sponsored 5/15/2026
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 5/15/2026
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 5/15/2026
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 5/15/2026
Rep. McBride, Sarah [D-DE-At Large]
DE • D
Sponsored 5/15/2026
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 5/15/2026
Rep. Evans, Dwight [D-PA-3]
PA • D
Sponsored 5/15/2026
Roll Call Votes
No roll call votes available for this bill.
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