,,ii #aahth ,,congress #ast ,session ,s4 #ajda ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bi1 #bjbc,mr4 ,brown 7for himself1 ,mr4 ,schumer1 ,mr4 ,sanders1 ,ms4 ,baldwin1 ,mr4 ,blumenthal1 ,mr4 ,booker1 ,ms4 ,cantwell1 ,mr4 ,casey1 ,ms4 ,duckworth1 ,mr4 ,durbin1 ,mr4 ,lujn1 ,mr4 ,markey1 ,mr4 ,merkley1 ,mr4 ,murphy1 ,mrs4 ,murray1 ,mr4 ,padilla1 ,mr4 ,reed1 ,mr4 ,schatz1 ,ms4 ,warren1 and ,mr4 ,wyden7 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 each year1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restoring ,overtime ,pay ,act of #bjbc4 #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 the ,secretary's 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#aich and has not precluded the ,secretary from using a salary threshold4 7#f7 ,the salary threshold became woefully out of date and ineffective as a result of not being sufficiently updated to keep pace with the changing economy1 as evidenced by the fact that #fc percent of all full-time salaried workers were guaranteed overtime pay under section #g of the ,fair ,labor ,standards ,act of #aich based on their salaries in #aige while1 in #bjbb1 less than #ae percent of all full-time salaried workers are guaranteed such overtime pay under the overtime rule promulgated on ,september #bg1 #bjai4 7#g7 ,weak overtime protections also hurt the many workers who are forced into part-time jobs but need full-time jobs to support themselves and their families4 ,when employers can no longer overwork employees who are exempt from overtime pay because of lax standards1 they will be forced to spread work and hours across their workforce4 ,restoring overtime protections is especially important in #bjbc1 as the economy of the ,united ,states is still recovering from the pandemic and many workers report their employers demanding excessive hours4 7#h7 ,in #bjae1 when the ,department of ,labor proposed an increase to the overtime salary threshold rule under the ,obama ,administration1 it found that the historic range of the overtime salary threshold under the ,fair ,labor ,standards ,act of #aich ran from approximately the #ceth to the #eeth percentile of weekly earnings for all full-time salaried workers4 ,by phasing the overtime salary threshold back up to the #eeth percentile of earnings of full-time salaried workers nationally--which after adjusting for inflation is projected to translate to an annualized amount of #gc1eea in #bjba and #hb1gde by #bjbf 7roughly the level of the boldest ,state overtime threshold increase7--the ,united ,states can restore overtime protections to historic levels4 #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 #bjbc1 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 weekly rate of the applicable annualized salary threshold under paragraph 7#b74 7#b7 ,salary threshold 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the applicable annualized salary threshold shall be-- 7i7 #de1jjj1 beginning on the effective date of the ,restoring ,overtime ,pay ,act of #bjbc2 7ii7 #ee1jjj1 beginning on ,january #a1 #bjbd2 7iii7 #fe1jjj1 beginning on ,january #a1 #bjbe2 7iv7 #ge1jjj1 beginning on ,january #a1 #bjbf2 and 7v7 beginning on ,january #a1 #bjbg1 an annualized amount that is equal to the rate of the #eeth percentile of weekly earnings of full-time salaried workers nationally1 as determined by the ,bureau of ,labor ,statistics based on data from the second quarter of #bjbf4 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 a rate that-- 7i7 is greater than the applicable annualized salary threshold under 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 #a year after the salary threshold first takes effect under subparagraph 7,a77v71 and annually thereafter1 or1 in the case in which the ,secretary establishes an increased salary threshold under subparagraph 7,b71 annually after establishing such increased salary threshold1 the ,secretary shall update the rate of the salary threshold in effect under subparagraph 7,a77v7 or 7,b71 as applicable1 so that such rate is equal to-- 7,i7 in the case in which the ,secretary does not establish an increased salary threshold under subparagraph 7,b71 the #eeth percentile of weekly earnings of full-time salaried workers nationally1 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 #eeth 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 ,section #eec of title #e1 ,united ,states ,code1 shall not apply to any update described in this subparagraph4 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 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 full-time salaried workers by census region 7as designated by the ,bureau of the ,census74 #d4 ,nonexempt duties limit for bona fide executive1 administrative1 or professional employees ,section #ac7;a77#a7 of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bac71 as amended in section #c7;a77#a71 is further amended-- 7#a7 by striking of a retail or service establishment shall not and inserting shall2 7#b7 by striking because of and all that follows through administrative activities12 7#c7 by striking less than #dj and inserting not less than #bj2 and 7#d7 by striking such activities and inserting activities not directly or closely related to the performance of executive or administrative activities4 #e4 ,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