On May 18, Sen. Bernie Sanders (I-VT) and Rep. Mark Takano (D-CA) introduced legislation (S.4551/H.R.8868) to raise the salary threshold in the white-collar exemption to overtime (OT) rules. The Restoring Overtime Pay Act would phase in an increase in the salary threshold from the current $35,256 to as much as $98,000 by 2030.
S.4551 has 27 Democratic cosponsors in the Senate. H.R.8868 has 22 cosponsors, all Democrats, in the House.
During the Biden Administration, the Department of Labor issued a regulation that would have raised the white-collar exemption’s salary threshold to $59,000, but the regulation was struck down by the courts. Since then, DOL has officially rescinded that regulation. So, the current white-collar exemption—the level of professional, executive and administrative personnel compensation below which overtime must be paid—is $35,256/year.
Prospects: This legislation is partisan, and unlikely to pass Congress while Republicans remain in control.
NAIFA Staff Contacts: Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.