S. 4551

[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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