,,ii #aafth ,,congress #ast ,session ,s4 #aghf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #aa1 #bjai ,mr4 ,brown 7for himself1 ,mrs4 ,murray1 ,mr4 ,van ,hollen1 ,ms4 ,baldwin1 ,mr4 ,durbin1 ,ms4 ,warren1 ,mr4 ,markey1 ,mr4 ,sanders1 ,mrs4 ,gillibrand1 ,mr4 ,whitehouse1 ,ms4 ,klobuchar1 ,ms4 ,harris1 ,mr4 ,schatz1 ,mr4 ,cardin1 ,mr4 ,wyden1 ,mr4 ,merkley1 ,ms4 ,cantwell1 ,mr4 ,blumenthal1 ,mr4 ,booker1 ,ms4 ,duckworth1 and ,mr4 ,casey7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,fair ,labor ,standards ,act of #aich to establish a minimum salary threshold for bona fide executive1 administrative1 and professional employees exempt from ,federal overtime compensation requirements1 and automatically update such threshold every #c years4 #a4 ,short title ,this ,act may be cited as the ,restoring ,overtime ,pay ,act of #bjai4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 established overtime compensation requirements for certain employees when they work more than #dj hours in a given workweek4 7#b7 ,under section #ac7;a77#a7 of such ,act1 ,congress delegated to the ,secretary of ,labor the authority to define and delimit the terms relating to the exemption for bona fide executive1 administrative1 and professional employees 7commonly known as the white collar exemption74 7#c7 ,for more than #ge years1 the ,secretary of ,labor has exercised its delegated authority to issue regulations that define and delimit the terms relating to the white collar exemption by applying a duties test and applying a minimum compensation level 7or salary threshold74 7#d7 ,the ,secretary of ,labor began utilizing a salary threshold in the initial regulations defining and delimiting the terms relating to the white collar exemption1 which were first issued in #aich4 7#e7 ,congress has long approved the use of a salary threshold by the ,secretary of ,labor1 as demonstrated by the fact that ,congress has amended the ,fair ,labor ,standards ,act of #aich at least #aj times since #aich and has not precluded the ,secretary from using a salary threshold4 7#f7 ,the salary threshold became woefully out of date and ineffective as a result of not being sufficiently updated to keep pace with a changing economy1 as evidenced by the fact that more than #fj percent of all full-time salaried workers earned less than the salary threshold in #aige and less than #g percent of these workers earned less than the salary threshold in #bjaf4 7#g7 ,the salary threshold of #dee per week1 or #bc1ffj per year1 that was in effect on ,may #bb1 #bjaf1 was below the poverty line for a family of #d4 7#h7 ,the ,secretary of ,labor updated the salary threshold on ,may #bc1 #bjaf1 through a final rule entitled ,defining and ,delimiting the ,exemptions for ,executive1 ,administrative1 ,professional1 ,outside ,sales and ,computer ,employees 7#ha ,fed4 ,reg4 #cbcia7 by increasing the salary threshold to the #djth percentile of earnings of full-time salaried employees in the lowest-wage census region1 resulting in a salary threshold of #iac per week or #dg1dgf per year4 7#i7 ,the final rule would benefit more than #ac1jjj1jjj employees by providing overtime compensation protections to #d1bjj1jjj new employees and strengthening overtime compensation protections for #h1ijj1jjj additional employees4 7#aj7 ,the ,secretary of ,labor went through a thorough process in crafting the final rule1 seeking public input and conducting extensive economic analysis1 including-- 7,a7 spending more than a year meeting with more than #bjj interested parties to obtain input before issuing the proposed rule in #bjae2 7,b7 considering more than #bgj1jjj comments received during the #fj-;day public comment period on the proposed rule2 and 7,c7 making significant changes in response to public input before issuing the final rule4 7#aa7 ,the public comments submitted to the ,secretary of ,labor regarding the proposed rule were overwhelmingly positive and supportive of the rule4 7#ab7 ,the increase in the salary threshold1 included in the final rule1 to the #djth percentile of earnings of full-time salaried employees in the lowest-wage census region1 resulting in a threshold of #iac per week or #dg1dgf per year1 was a strong yet measured increase by almost any measure1 including as compared to-- 7,a7 the higher salary threshold of #igj per week or #ej1ddj per year1 initially put forward by the ,secretary of ,labor in the proposed rule2 7,b7 the salary threshold of #ihd per week or #ea1afh per year1 which would have fully accounted for the erosion to the value of the salary threshold since #aige due to inflation2 7,c7 the salary threshold of #a1abb per week or #eh1cdd per year1 which would have covered the same share of all salaried workers as were covered in #aige after accounting for changes in the economy2 and 7,d7 the salary threshold of #a1cbg per week or #fi1jjd per year1 which would have covered the same percentage of all salaried workers as were covered in #aige without accounting for changes in the economy4 7#ac7 ,the ,united ,states ,district ,court for the ,eastern ,district of ,texas erroneously called the authority of the ,secretary of ,labor under the ,fair ,labor ,standards ,act of #aich into question when it issued a preliminary injunction enjoining the ,department of ,labor from enforcing the final overtime rule4 7#ad7 ,the ,united ,states ,district ,court for the ,eastern ,district of ,texas issued a final decision invalidating the rule1 threatening overtime protections for millions of workers4 7#ae7 ,on ,march #g1 #bjai1 the ,secretary of ,labor proposed to update the salary threshold to #ce1cjh1 which would deny overtime pay eligibility to approximately #c1jjj1jjj workers who would otherwise benefit from the higher salary threshold in the #bjaf final rule4 #c4 ,minimum salary threshold for bona fide executive1 administrative1 and professional employees exempt from ,federal overtime compensation requirements 7a7 ,in general ,section #ac of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bac7 is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 by inserting subsection 7k7 and after subject to2 and 7,b7 by inserting 7except as provided under subsection 7k77#b77;,c77 after ,administrative ,procedure ,act2 and 7#b7 by adding at the end the following3 7k7 ,minimum salary threshold 7#a7 ,in general ,beginning on the effective date of the ,restoring ,overtime ,pay ,act of #bjai1 the ,secretary shall require that an employee described in subsection 7a77#a71 as a requirement for exemption under such subsection1 be compensated on a salary basis1 or equivalent fee basis1 within the meaning of such terms in subpart ,g of part #eda of title #bi1 ,code of ,federal ,regulations 7or any successor regulation71 at a rate per week that is not less than the salary threshold under paragraph 7#b74 7#b7 ,salary threshold 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the salary threshold shall be an amount that is equal to the #djth percentile of earnings of full-time salaried workers in the lowest-wage census region1 as determined by the ,bureau of ,labor ,statistics based on data from the second quarter of the calendar year preceding the calendar year in which such amount takes effect4 7,b7 ,increased threshold ,the ,secretary may establish1 through notice and comment rulemaking under section #eec of title #e1 ,united ,states ,code1 a salary threshold that is an amount that-- 7i7 is greater than the #djth percentile of earnings of the full-time salaried workers described in subparagraph 7,a72 and 7ii7 is calculated based on a data set and methodology established by the ,secretary that are capable of being updated in accordance with subparagraph 7,c74 7,c7 ,automatic updates 7i7 ,in general ,not later than #c years after the salary threshold first takes effect under subparagraph 7,a71 and every #c years thereafter1 or1 in the case in which the ,secretary establishes an increased salary threshold under subparagraph 7,b71 every #c years after establishing such increased salary threshold1 the ,secretary shall update the amount of the salary threshold in effect under subparagraph 7,a7 or 7,b71 as applicable1 so that such amount is equal to-- 7,i7 in the case in which the ,secretary does not establish an increased salary threshold under subparagraph 7,b71 the #djth percentile of earnings of full-time salaried workers in the lowest-wage census region1 as determined by the ,bureau of ,labor ,statistics based on data from the second quarter of the calendar year preceding the calendar year in which such updated amount is to take effect2 and 7,,ii7 in the case in which the ,secretary establishes an increased salary threshold under subparagraph 7,b71 the greater of-- 7aa7 the #djth percentile described in subclause 7,i72 and 7bb7 the increased salary threshold established under subparagraph 7,b71 as updated in accordance with the data set and methodology established by the ,secretary under subparagraph 7,b77ii74 7ii7 ,nonapplicability of rulemaking ,any update described in this subparagraph shall not be subject to the requirements of notice and comment rulemaking under section #eec of title #e1 ,united ,states ,code4 7,d7 ,notice requirement ,not later than #fj days before a revised salary threshold under this paragraph takes effect1 the ,secretary shall publish a notice announcing the amount in the ,federal ,register and on the internet website of the ,department of ,labor4 7#c7 ,duties test ,the ,secretary shall1 in addition to the requirement under paragraph 7#a71 continue to require employees to satisfy a duties test1 as prescribed by the ,secretary1 in defining and delimiting the terms described in subsection 7a77#a74 4 7b7 ,publication of earnings ,not later than #ba days after the end of each calendar quarter1 the ,bureau of ,labor ,statistics shall publish on its public website1 for each week of such quarter1 data on the weekly earnings of nonhourly1 full-time salaried workers by census region 7as designated by the ,bureau of the ,census74 7c7 ,effective date ,this ,act1 and the amendments made by this ,act1 shall take effect on the first day of the third month that begins after the date of enactment of this ,act4