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Restoring Overtime Pay Act of 2023
12/15/2023, 4:06 PM
Summary of Bill S 1041
The bill aims to increase the salary threshold for overtime pay eligibility, which determines which workers are entitled to receive overtime pay for hours worked beyond the standard 40-hour workweek. This threshold was previously raised in 2016 but has not been adjusted since then, leading to many workers being excluded from overtime pay.
If passed, the Restoring Overtime Pay Act of 2023 would raise the salary threshold to ensure that more workers are eligible for overtime pay. This would provide much-needed financial relief to many American workers who are currently working long hours without receiving fair compensation. Overall, this bill seeks to protect the rights of workers and ensure that they are fairly compensated for their hard work. It is an important piece of legislation that aims to address the issue of wage inequality and provide greater economic security for American workers.
Congressional Summary of S 1041
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.
