Wire

$45K to $75k salary line proposed for overtime‑exempt jobs

The Senate measure from Senator Bernie Sanders would phase in higher pay thresholds and then tie the exemption to the 55th percentile of U.S. salaried earnings.

Millions of salaried employees labeled as managers or professionals can work long weeks without overtime pay under federal labor law. In the U.S. Senate, a proposal would tighten that rule by setting a clear minimum salary threshold that employers must meet before workers in those roles can be denied overtime.

The bill, introduced May 18 by Senator Bernie Sanders of Vermont and backed by more than two dozen Senate colleagues, would amend the Fair Labor Standards Act of 1938. It targets the law’s exemption for so‑called executive, administrative, and professional employees, the category many companies rely on when classifying salaried staff as ineligible for time‑and‑a‑half pay after 40 hours.

Drawing a firmer pay line

The proposal, titled the Restoring Overtime Pay Act of 2026, would require the Labor Department to enforce a specific salary threshold before the exemption can apply. If a worker’s pay falls below that line, the employer could not treat the person as overtime‑exempt simply by giving them a managerial or professional title.

The measure would also require the threshold to update automatically each year. That mechanism is meant to prevent the salary line from losing value over time as wages rise, a problem that has repeatedly forced federal regulators to revisit overtime rules through separate rulemaking fights.

Back to wire