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.
