Millions of salaried workers gain overtime pay under new wage floor
H.R. 8868 — Restoring Overtime Pay Act of 2026 · Filed by Mark Takano (D-CA) · 32 cosponsors · Introduced May 15, 2026 · Referred to committee
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What it does
This bill raises the salary threshold that determines which salaried workers are exempt from overtime pay requirements. It sets the threshold at $45,000 immediately upon enactment, then increases it to $55,000 in 2027, $65,000 in 2028, and $75,000 in 2029. Starting in 2030, the threshold automatically adjusts each year to match the 55th percentile of full-time salaried worker earnings, ensuring that more workers qualify for overtime protection as wages rise. The bill also requires that exempt employees spend at least 20% of their time on actual executive or administrative duties, not unrelated tasks.
Why we flagged it
The bill's core mechanism is straightforward: it raises the salary threshold for overtime exemption and locks in automatic annual increases tied to wage data. This directly expands overtime eligibility for salaried workers, a protective labor standard.
What the text implies
- Employers will face pressure to either pay overtime or reclassify workers as hourly, potentially reducing benefits eligibility or job titles for affected workers.
- Small businesses with tight margins may reduce hours, freeze hiring, or accelerate automation to offset increased labor costs.
The full analysis lists 4 implications of this text.
Who stands to gain
salaried workers earning $45,000–$75,000+ annually; labor unions (increased overtime hours may drive union organizing); staffing and temporary employment agencies (may benefit from increased demand for hourly workers)