To amend the Fair Labor Standards Act of 1938 to adjust the rate employers pay for overtime hours from one and one-half to two times the regular rate.
Introduced June 9, 2026 · Last action June 9, 2026
Plain English Summary
This bill amends the Fair Labor Standards Act to increase the overtime pay rate from 1.5 times the regular hourly wage to 2 times the regular hourly wage. This means employers would owe workers double their normal hourly rate for all hours worked beyond the standard workweek, rather than the current 50% premium.
Who benefits
Hourly workers and salaried employees eligible for overtime pay, particularly low- and middle-wage workers in retail, food service, manufacturing, healthcare, transportation, and logistics who regularly work overtime hours; workers in industries with mandatory overtime practices would see significantly higher compensation for additional hours worked.
Who pays / loses
Employers across all industries—especially labor-intensive sectors including retail, hospitality, food service, manufacturing, construction, warehousing, and healthcare—would face higher payroll costs for overtime compensation; small businesses with tighter profit margins would face proportionally larger cost increases relative to large employers.
Funding & Lobbying Interests
Labor unions and worker advocacy organizations support increased overtime standards; industries with high overtime utilization (transportation, warehousing, construction, healthcare, retail) and their employer associations (National Retail Federation, U.S. Chamber of Commerce, National Association of Manufacturers) typically oppose increases to overtime pay multipliers due to rising labor costs.
Political Impact
Affected Groups
Approximately 8-10 million U.S. workers regularly earn overtime pay; this group skews toward lower-income workers (median household income under $60,000), workers in blue-collar occupations, and workers in high-turnover industries. Small business employers (firms with fewer than 500 employees) would face steeper proportional cost burdens than large corporations.
Political Subtext
Proponents argue this restores worker purchasing power and reflects inflation since overtime standards were last significantly adjusted, incentivizes employers to hire additional workers rather than require existing workers to work overtime, and reduces income inequality. Opponents argue this increases business operating costs, reduces profitability, pressures small employers, and may lead to reduced hiring, lower wages in non-overtime hours, or reduced hours availability. Economic research shows mixed effects: CBO and Labor Department analyses of past overtime increases document both worker income gains and some employment effects, with larger impacts on small employers and seasonal industries.
Real-World Stakes
If enacted, total employer overtime payroll costs would increase substantially—past CBO analyses suggest increases of 10-25% in overtime compensation costs depending on industry. Historical precedent: when the Obama administration proposed raising the overtime threshold in 2015-2016, CBO estimated 1-2% overall wage growth for affected workers but also projected modest employment adjustments. States that have implemented higher overtime multipliers (California's 8/12-hour daily overtime rules) show workers earn more in overtime compensation but some evidence of reduced scheduling flexibility and possible hour reduction strategies by employers. Certain industries (healthcare, retail, warehousing) with high baseline overtime usage would face the largest cost impacts and may adjust staffing models, automation investments, or pricing.
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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