Restoring Overtime Pay Act of 2026

The Restoring Overtime Pay Act of 2026 raises the minimum salary required for certain employees to be exempt from federal overtime pay rules, starting at $45,000 per year and increasing annually until it reaches $75,000 by 2029. The bill also mandates that this threshold automatically updates each year to match the 55th percentile of weekly earnings for full-time salaried workers nationwide, with adjustments taking effect based on Bureau of Labor Statistics data. Additionally, the law modifies the duties test for exemption, requiring that at least 20 percent of an employee's time be spent on executive or administrative tasks rather than the current 40 percent standard. These changes directly affect employers and workers covered by the Fair Labor Standards Act by redefining eligibility for overtime exemptions and establishing a new mechanism for adjusting salary requirements over time.