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S. 4551119th CongressIn committeeLatest action May 18, 2026Decoded by AI · checked against the record
Official title: Restoring Overtime Pay Act of 2026
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
S 4551 raises the overtime-exempt salary floor from roughly $35,000 to $75,000 by 2029 and tightens the duties test for exempt workers.
60-second read · 4 questions answered below
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.
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.
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.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the President.
Latest action: — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.