Senate bill would raise overtime salary threshold to $75,000 by 2029

What does this do?

S 4551 raises the minimum salary at which salaried workers can be classified as exempt from overtime pay, moving in steps from $45,000 at enactment to $55,000 in 2027, $65,000 in 2028, and $75,000 in 2029. Beginning in 2030, the threshold adjusts automatically each year to match the 55th percentile of full-time salaried worker earnings nationally. The bill also requires that at least 20 percent of a worker's time be spent on genuine executive or administrative duties to qualify for the overtime exemption.

Who does it affect?

Salaried workers currently earning between roughly $35,000 and $75,000 who are classified as overtime-exempt are directly affected, particularly those in executive, administrative, or professional roles. Employers across many industries, especially small businesses with salaried supervisors or office workers, may need to restructure pay or begin paying overtime.

Why does it matter?

Employers who currently classify workers as exempt below the new thresholds would need to either raise those workers' salaries or pay them overtime, changing labor cost structures. The tightened duties test makes it harder for employers to designate workers as managers or professionals on paper when most of their actual work is routine.

Where does it stand?