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Restoring Overtime Pay Act of 2023
12/13/2023, 8:35 AM
Summary of Bill HR 2395
Currently, the Fair Labor Standards Act (FLSA) requires employers to pay overtime to employees who work more than 40 hours per week, unless they meet certain exemptions. However, the salary threshold for these exemptions has remained stagnant for decades, leading to many workers being denied overtime pay.
The Restoring Overtime Pay Act of 2023 proposes to raise the salary threshold for overtime pay eligibility to a level that is more in line with inflation and the cost of living. This would ensure that more workers are fairly compensated for their overtime work. The bill also includes provisions to protect workers from retaliation by their employers for asserting their rights to overtime pay. It aims to strengthen enforcement mechanisms to ensure that employers comply with the new overtime pay requirements. Overall, the Restoring Overtime Pay Act of 2023 seeks to address the issue of stagnant wages and ensure that American workers are fairly compensated for their hard work. It is a step towards promoting economic fairness and improving the well-being of working families across the country.
Congressional Summary of HR 2395
Restoring Overtime Pay Act of 2023
This bill requires the Department of Labor to increase the salary threshold applicable to bona fide executive, administrative, and professional employees for purpose of determining eligibility for overtime pay. The bill phases in the increased threshold over which employees are exempt from overtime pay requirements beginning at an annual salary of $45,000 upon the bill's effective date. (The current threshold is generally $35,568.) Beginning in 2028, Labor must annually update the threshold to the 55th percentile (nationally) of weekly earnings for full-time salaried workers.
Further, the exemption from overtime pay for bona fide executive, administrative, and professional employees does not apply if at least 20% of an employee's duties are not directly or closely related to the performance of executive or administrative activities.
In addition, the Bureau of Labor Statistics shall publish quarterly on its website data about the weekly earnings of full-time salaried workers by census region.
