Restoring Overtime Pay: Higher Salary Threshold for Exempt Workers.
This bill restores overtime pay eligibility for millions of salaried workers currently excluded due to an outdated salary threshold. It mandates a phased increase in the minimum annual salary below which executive, administrative, and professional employees must receive overtime compensation (time-and-a-half for over 40 hours). The threshold will reach $75,000 by 2026 and will be automatically adjusted annually thereafter to keep pace with national wage growth.
Key points
Increased Salary Threshold: Employees earning below $75,000 annually (by 2026) must receive overtime pay for working more than 40 hours per week, regardless of their job title.
Automatic Annual Updates: Starting in 2027, the threshold will be automatically updated yearly based on the 55th percentile of national full-time salaried workers' earnings.
Restored Protections: This change aims to ensure that employers cannot classify lower-paid salaried workers as exempt from overtime simply based on their job duties.
Status:
Expired
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