[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4551 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4551
To amend the Fair Labor Standards Act of 1938 to establish a minimum
salary threshold for bona fide executive, administrative, and
professional employees exempt from Federal overtime compensation
requirements, and automatically update such threshold each year, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2026
Mr. Sanders (for himself, Mr. Schumer, Mr. Padilla, Mr. Schatz, Ms.
Duckworth, Ms. Warren, Ms. Baldwin, Mrs. Murray, Mr. Markey, Mr.
Whitehouse, Mr. Booker, Mr. Blumenthal, Mr. Fetterman, Ms. Cantwell,
Mr. Murphy, Mr. Gallego, Mr. Wyden, Mr. Merkley, Mr. Durbin, Mr. Welch,
Ms. Hirono, Mr. Kim, Ms. Alsobrooks, Mr. Reed, Mr. Lujan, and Ms. Blunt
Rochester) introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 to establish a minimum
salary threshold for bona fide executive, administrative, and
professional employees exempt from Federal overtime compensation
requirements, and automatically update such threshold each year, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restoring Overtime Pay Act of
2026''.
SEC. 2. MINIMUM SALARY THRESHOLD FOR BONA FIDE EXECUTIVE,
ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES EXEMPT FROM
FEDERAL OVERTIME COMPENSATION REQUIREMENTS.
(a) In General.--Section 13 of the Fair Labor Standards Act of 1938
(29 U.S.C. 213) is amended--
(1) in subsection (a)(1)--
(A) by inserting ``subsection (k) and'' after
``subject to''; and
(B) by inserting ``(except as provided under
subsection (k)(2)(C))'' after ``Administrative
Procedure Act''; and
(2) by adding at the end the following:
``(k) Minimum Salary Threshold.--
``(1) In general.--Beginning on the effective date of the
Restoring Overtime Pay Act of 2026, the Secretary shall require
that an employee described in subsection (a)(1), as a
requirement for exemption under such subsection, be compensated
on a salary basis, or equivalent fee basis, within the meaning
of such terms in subpart G of part 541 of title 29, Code of
Federal Regulations (or any successor regulation), at a rate
per week that is not less than the weekly rate of the
applicable annualized salary threshold under paragraph (2).
``(2) Salary threshold.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the applicable annualized salary threshold shall
be--
``(i) $45,000, beginning on the effective
date of the Restoring Overtime Pay Act of 2026;
``(ii) $55,000, beginning on January 1,
2027;
``(iii) $65,000, beginning on January 1,
2028;
``(iv) $75,000, beginning on January 1,
2029; and
``(v) beginning on January 1, 2030, an
annualized amount that is equal to the rate of
the 55th percentile of weekly earnings of full-
time salaried workers nationally, as determined
by the Bureau of Labor Statistics based on data
from the second quarter of 2029.
``(B) Increased threshold.--The Secretary may
establish, through notice and comment rulemaking under
section 553 of title 5, United States Code, a salary
threshold that is a rate that--
``(i) is greater than the applicable
annualized salary threshold under subparagraph
(A); and
``(ii) is calculated based on a data set
and methodology established by the Secretary
that are capable of being updated in accordance
with subparagraph (C).
``(C) Automatic updates.--
``(i) In general.--Not later than 1 year
after the salary threshold first takes effect
under subparagraph (A)(v), and annually
thereafter, or, in the case in which the
Secretary establishes an increased salary
threshold under subparagraph (B), annually
after establishing such increased salary
threshold, the Secretary shall update the rate
of the salary threshold in effect under
subparagraph (A)(v) or (B), as applicable, so
that such rate is equal to--
``(I) in the case in which the
Secretary does not establish an
increased salary threshold under
subparagraph (B), the 55th percentile
of weekly earnings of full-time
salaried workers nationally, as
determined by the Bureau of Labor
Statistics based on data from the
second quarter of the calendar year
preceding the calendar year in which
such updated amount is to take effect;
and
``(II) in the case in which the
Secretary establishes an increased
salary threshold under subparagraph
(B), the greater of--
``(aa) the 55th percentile
described in subclause (I); and
``(bb) the increased salary
threshold established under
subparagraph (B), as updated in
accordance with the data set
and methodology established by
the Secretary under
subparagraph (B)(ii).
``(ii) Nonapplicability of rulemaking.--
Section 553 of title 5, United States Code,
shall not apply to any update described in this
subparagraph.
``(D) Notice requirement.--Not later than 60 days
before a revised salary threshold under this paragraph
takes effect, the Secretary shall publish a notice
announcing the amount in the Federal Register and on
the internet website of the Department of Labor.''.
(b) Publication of Earnings.--Not later than 21 days after the end
of each calendar quarter, the Bureau of Labor Statistics shall publish
on its public website, for each week of such quarter, data on the
weekly earnings of full-time salaried workers by census region (as
designated by the Bureau of the Census).
SEC. 3. NONEXEMPT DUTIES LIMIT FOR BONA FIDE EXECUTIVE, ADMINISTRATIVE,
OR PROFESSIONAL EMPLOYEES.
Section 13(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
213(a)(1)), as amended in section 2(a)(1), is further amended--
(1) by striking ``of a retail or service establishment
shall not'' and inserting ``shall'';
(2) by striking ``because of'' and all that follows through
``administrative activities,'';
(3) by striking ``less than 40'' and inserting ``not less
than 20''; and
(4) by striking ``such activities'' and inserting
``activities not directly or closely related to the performance
of executive or administrative activities''.
SEC. 4. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the first day of the third month that begins after the date of
enactment of this Act.
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