U.S. lawmakers propose overtime pay expansion for nearly 30 million workers
A new congressional proposal seeks to widen overtime eligibility as debate intensifies over worker pay and cost-of-living pressures in the U.S. The Restoring Overtime Pay Act would gradually raise the salary threshold for overtime coverage from $35,568 to more than $89,000 by 2030.
Highlights
- The Restoring Overtime Pay Act proposes raising the overtime salary threshold from $35,568 to over $89,000 by 2030, impacting nearly 30 million workers.
- If enacted, the legislation would increase the share of full-time salaried workers qualifying for overtime pay from 8% to 55%, approaching historical coverage levels.
- The proposed bill is supported by major Democratic lawmakers and 34 labor organizations, including AFL-CIO and United Auto Workers, indicating strong organized labor backing.
Legislation targets broader overtime coverage
As reported by the Senate Committee on Health, Education, Labor, and Pensions, Sen. Bernie Sanders and Rep. Mark Takano introduce the Restoring Overtime Pay Act to expand and strengthen overtime protections for nearly 30 million workers.Under the proposal, the overtime salary threshold rises in stages from the current $35,568 to more than $89,000 by 2030. The measure follows President Trump's rescission of a Biden-era rule that would have expanded overtime pay for more than 4 million workers.
Sanders says the bill responds to widening income and wealth inequality and argues workers putting in more than 40 hours a week should receive time-and-a-half pay. Takano says expanding the salary threshold is intended to help families manage a cost-of-living crisis and ensure salaried employees are paid fairly for extra hours worked.
Labor and policy implications
Backers of the bill say only 8% of full-time salaried workers currently qualify for overtime pay based on salary alone. The legislation would increase that share to 55%, compared with nearly 63% of full-time salaried workers who were guaranteed overtime pay in 1975.The measure is backed by a broad group of Democratic lawmakers in the Senate and House, including Senate Democratic leader Chuck Schumer and several senior committee figures. It also has endorsements from 34 labor and worker advocacy organizations, including the AFL-CIO, United Auto Workers, Service Employees International Union and United Steelworkers, signaling organized labor support for a broader reset of wage protections.
Our earlier coverage of the NLSY97 analysis on depressive symptoms and labor outcomes during and after COVID-19 explained that higher reported depression was linked to weaker employment, lower earnings, and fewer hours worked through 2022. It also highlighted that women and adults with children were disproportionately affected, underscoring how health pressures can translate into lasting labor-market setbacks.
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