HR8868119th CongressWALLET

Restoring Overtime Pay Act of 2026

Sponsored By: Representative Takano, Mark [D-CA-39]

Introduced

Summary

Restores overtime pay by raising and automatically updating the salary cutoff for white-collar exemptions. This bill would reset the salary test for executive, administrative, and professional exemptions and create an automatic, data-driven update process tied to Bureau of Labor Statistics data.

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  • Workers: Would raise the salary cutoff over several years, reaching $75,000 by 2029 and then switch to the 55th percentile of full-time salaried weekly earnings in 2030.
  • Employers and rulemaking: Gives the Labor Secretary authority to set a higher threshold through notice-and-comment rulemaking and requires annual automatic updates that are not subject to notice-and-comment.
  • Duties and reporting: Alters the duties test for exempt employees by changing numeric limits and narrowing which activities count as nonexempt. It also requires the Bureau of Labor Statistics to publish weekly earnings by region each quarter and requires the Department of Labor to announce revised thresholds at least 60 days before they take effect.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Higher salary test for white-collar workers

If enacted, this bill would raise the minimum yearly salary needed to claim the executive, administrative, and professional overtime exemptions. The salary test would be $45,000 at the law's start, $55,000 on Jan 1, 2027, $65,000 on Jan 1, 2028, and $75,000 on Jan 1, 2029. Starting Jan 1, 2030, the threshold would match the 55th percentile of weekly earnings of full-time salaried workers nationally as measured by BLS using Q2 2029 data, and the threshold would be updated annually after that. The Labor Secretary could set a higher threshold by notice-and-comment rulemaking, and updates would take effect after notice at least 60 days before the change. BLS would also publish quarterly weekly-earnings data by census region within 21 days after each quarter ends.

Narrower duties test for salaried workers

If enacted, the bill would change the legal duties test employers use to claim white-collar exemptions. It would remove language about retail or service establishments, shorten and refocus which nonexempt activities count, and replace the phrase "less than 40" with "not less than 20." The bill would also narrow which activities count as exempt duties to those directly or closely related to executive or administrative work. These wording changes would make it harder for some employers to treat salaried workers as exempt and could increase overtime eligibility.

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

  • Rep. Rivas, Luz M. [D-CA-29]

    CA • D

    Sponsored 7/16/2026

  • Rep. Randall, Emily [D-WA-6]

    WA • D

    Sponsored 7/16/2026

  • Rep. Jackson, Jonathan L. [D-IL-1]

    IL • D

    Sponsored 7/16/2026

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 7/16/2026

  • Rep. Waters, Maxine [D-CA-43]

    CA • D

    Sponsored 7/16/2026

  • Rep. Mullin, Kevin [D-CA-15]

    CA • D

    Sponsored 7/20/2026

  • Rep. Meng, Grace [D-NY-6]

    NY • D

    Sponsored 7/21/2026

  • Rep. Ansari, Yassamin [D-AZ-3]

    AZ • D

    Sponsored 7/22/2026

  • Rep. Bonamici, Suzanne [D-OR-1]

    OR • D

    Sponsored 8/3/2026

Roll Call Votes

No roll call votes available for this bill.

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