Restoring Overtime Pay Act of 2019

To amend the Fair Labor Standards Act of 1938 to establish a minimum salary threshold for bona fide executive, administrative, and professional employees exempt from Federal overtime compensation requirements, and automatically update such threshold every 3 years. 1. Short title This Act may be cited as the Restoring Overtime Pay Act of 2019 2. Minimum salary threshold for bona fide executive, administrative, and professional employees exempt from Federal overtime compensation requirements (a) In general Section 13 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 213 (1) in subsection (a)(1)— (A) by inserting subsection (k) and subject to (B) by inserting (except as provided under subsection (k)(2)(C)) Administrative Procedure Act (2) by adding at the end the following: (k) Minimum salary threshold (1) In general Beginning on the effective date of the Restoring Overtime Pay Act of 2019, the Secretary shall require that an employee described in subsection (a)(1), as a requirement for exemption under such subsection, be compensated on a salary basis, or equivalent fee basis, within the meaning of such terms in subpart G of part 541 of title 29, Code of Federal Regulations (or any successor regulation), at a rate per week that is not less than the salary threshold under paragraph (2). (2) Salary threshold (A) In general Subject to subparagraphs (B) and (C), the salary threshold shall be an amount that is equal to the 40th percentile of earnings of full-time salaried workers in the lowest-wage census region, 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 effect. (B) Increased threshold The Secretary may establish, through notice and comment rulemaking under section 553 of title 5, United States Code, a salary threshold that is an amount that— (i) is greater than the 40th percentile of earnings of the full-time salaried workers described in subparagraph (A); and (ii) is calculated based on a data set and methodology established by the Secretary that are capable of being updated in accordance with subparagraph (C). (C) Automatic updates (i) In general Not later than 3 years after the salary threshold first takes effect under subparagraph (A), and every 3 years thereafter, or, in the case in which the Secretary establishes an increased salary threshold under subparagraph (B), every 3 years after establishing such increased salary threshold, the Secretary shall update the amount of the salary threshold in effect under subparagraph (A) or (B), as applicable, so that such amount is equal to— (I) in the case in which the Secretary does not establish an increased salary threshold under subparagraph (B), the 40th percentile of earnings of full-time salaried workers in the lowest-wage census region, 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 effect; and (II) in the case in which the Secretary establishes an increased salary threshold under subparagraph (B), the greater of— (aa) the 40th percentile described in subclause (I); and (bb) the increased salary threshold established under subparagraph (B), as updated in accordance with the data set and methodology established by the Secretary under subparagraph (B)(ii). (ii) Nonapplicability of rulemaking Any update described in this subparagraph shall not be subject to the requirements of notice and comment rulemaking under section 553 of title 5, United States Code. (D) Notice requirement Not later than 60 days before a revised salary threshold under this paragraph takes effect, the Secretary shall publish a notice announcing the amount in the Federal Register and on the internet website of the Department of Labor. (3) Duties test The Secretary shall, in addition to the requirement under paragraph (1), continue to require employees to satisfy a duties test, as prescribed by the Secretary, in defining and delimiting the terms described in subsection (a)(1). . (b) Publication of earnings Not later than 21 days after the end of each calendar quarter, the Bureau of Labor Statistics shall publish on its public website, for each week of such quarter, data on the weekly earnings of nonhourly, full-time salaried workers by census region (as designated by the Bureau of the Census). (c) Effective date This Act, and the amendments made by this Act, shall take effect on the first day of the third month that begins after the date of enactment of this Act.

Summary: Restoring Overtime Pay Act of 2019 This bill requires the Department of Labor to update the salary threshold applicable to bona fide executive, administrative, and professional employees for purposes of determining eligibility for overtime pay. The bill adopts rulemaking promulgated by Labor in 2016 that established the threshold for exempting such employees from overtime requirements at the 40th percentile of earnings for full-time salaried employees in the lowest-wage census region. The bill also requires updates to the threshold amount every three years. In addition, the Bureau of Labor Statistics shall publish quarterly on its public website data on the weekly earnings of nonhourly, full-time salaried workers by census region.