Restoring Overtime Pay Act of 2026

This bill significantly amends the Fair Labor Standards Act of 1938 to update federal overtime compensation requirements, primarily by establishing a new, higher minimum salary threshold for executive, administrative, and professional employees to qualify for exemption from overtime pay. The legislation mandates a phased increase in this threshold, starting at $45,000 upon its effective date and rising to $75,000 by January 1, 2029. This aims to ensure that more salaried workers are eligible for overtime compensation. Beginning in 2030, the salary threshold will be subject to automatic updates annually, set at the 55th percentile of weekly earnings for full-time salaried workers nationally, ensuring it keeps pace with current wages. Furthermore, the bill modifies the duties test for these exemptions, making it more challenging for employees to be classified as exempt if they spend a substantial portion of their time on tasks not directly related to executive or administrative duties. These combined changes are designed to expand overtime eligibility for millions of workers.