Restoring Overtime Pay Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3197 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. IN THE HOUSE OF REPRESENTATIVES JUNE 11, 2019 Mr. TAKANO (for himself, Mr. SCOTT of Virginia, Ms. ADAMS, Ms. WILSON of Florida, Ms. KAPTUR, Ms. WASSERMAN SCHULTZ, Ms. SCHAKOWSKY, Mr. ESPAILLAT, Mr. RYAN, Ms. WATERS, Mr. PALLONE, Mr. PASCRELL, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. DELAURO, Mr. SERRANO, Mr. GRIJALVA, Ms. BONAMICI, Mr. CUMMINGS, Mr. DESAULNIER, Ms. OMAR, Mr. POCAN, Ms. NORTON, Ms. LEE of California, Mr. THOMPSON of Mississippi, Ms. HAALAND, Ms. JAYAPAL, Mrs. WATSON COLEMAN, Mr. RASKIN, Ms. BARRAGA´N, Mrs. DAVIS of California, Mr. DANNY K. DAVIS of Illinois, Mr. SIRES, Mr. LEVIN of Michigan, Mr. KHANNA, Mr. SMITH of Washington, Ms. TLAIB, Mr. BEYER, Ms. WILD, Ms. MUCARSEL-POWELL, Mr. KENNEDY, Mrs. NAPOLITANO, Mr. NADLER, Mr. COHEN, Mr. PAYNE, Mr. GARCI´A of Illinois, Mr. NORCROSS, and Ms. PRESSLEY) introduced the following bill; which was referred to the Com- mittee on Education and Labor A BILL To amend the Fair Labor Standards Act of 1938 to establish a minimum salary threshold for bona fide executive, ad- ministrative, and professional employees exempt from Federal overtime compensation requirements, and auto- matically update such threshold every 3 years. VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS 2 •HR 3197 IH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Restoring Overtime 4 Pay Act of 2019’’. 5 SEC. 2. MINIMUM SALARY THRESHOLD FOR BONA FIDE EX- 6 ECUTIVE, ADMINISTRATIVE, AND PROFES- 7 SIONAL EMPLOYEES EXEMPT FROM FEDERAL 8 OVERTIME COMPENSATION REQUIREMENTS. 9 (a) IN GENERAL.—Section 13 of the Fair Labor 10 Standards Act of 1938 (29 U.S.C. 213) is amended— 11 (1) in subsection (a)(1)— 12 (A) by inserting ‘‘subsection (k) and’’ after 13 ‘‘subject to’’; and 14 (B) by inserting ‘‘(except as provided 15 under subsection (k)(2)(C))’’ after ‘‘Administra- 16 tive Procedure Act’’; and 17 (2) by adding at the end the following: 18 ‘‘(k) MINIMUM SALARY THRESHOLD.— 19 ‘‘(1) IN GENERAL.—Beginning on the effective 20 date of the Restoring Overtime Pay Act of 2019, the 21 Secretary shall require that an employee described in 22 subsection (a)(1), as a requirement for exemption 23 under such subsection, be compensated on a salary 24 basis, or equivalent fee basis, within the meaning of 25 VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS 3 •HR 3197 IH such terms in subpart G of part 541 of title 29, 1 Code of Federal Regulations (or any successor regu- 2 lation), at a rate per week that is not less than the 3 salary threshold under paragraph (2). 4 ‘‘(2) SALARY THRESHOLD.— 5 ‘‘(A) IN GENERAL.—Subject to subpara- 6 graphs (B) and (C), the salary threshold shall 7 be an amount that is equal to the 40th per- 8 centile of earnings of full-time salaried workers 9 in the lowest-wage census region, as determined 10 by the Bureau of Labor Statistics based on 11 data from the second quarter of the calendar 12 year preceding the calendar year in which such 13 amount takes effect. 14 ‘‘(B) INCREASED THRESHOLD.—The Sec- 15 retary may establish, through notice and com- 16 ment rulemaking under section 553 of title 5, 17 United States Code, a salary threshold that is 18 an amount that— 19 ‘‘(i) is greater than the 40th per- 20 centile of earnings of the full-time salaried 21 workers described in subparagraph (A); 22 and 23 ‘‘(ii) is calculated based on a data set 24 and methodology established by the Sec- 25 VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS 4 •HR 3197 IH retary that are capable of being updated in 1 accordance with subparagraph (C). 2 ‘‘(C) AUTOMATIC UPDATES.— 3 ‘‘(i) IN GENERAL.—Not later than 3 4 years after the salary threshold first takes 5 effect under subparagraph (A), and every 6 3 years thereafter, or, in the case in which 7 the Secretary establishes an increased sal- 8 ary threshold under subparagraph (B), 9 every 3 years after establishing such in- 10 creased salary threshold, the Secretary 11 shall update the amount of the salary 12 threshold in effect under subparagraph (A) 13 or (B), as applicable, so that such amount 14 is equal to— 15 ‘‘(I) in the case in which the Sec- 16 retary does not establish an increased 17 salary threshold under subparagraph 18 (B), the 40th percentile of earnings of 19 full-time salaried workers in the low- 20 est-wage census region, as determined 21 by the Bureau of Labor Statistics 22 based on data from the second quar- 23 ter of the calendar year preceding the 24 VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS 5 •HR 3197 IH calendar year in which such updated 1 amount is to take effect; and 2 ‘‘(II) in the case in which the 3 Secretary establishes an increased sal- 4 ary threshold under subparagraph 5 (B), the greater of— 6 ‘‘(aa) the 40th percentile de- 7 scribed in subclause (I); and 8 ‘‘(bb) the increased salary 9 threshold established under sub- 10 paragraph (B), as updated in ac- 11 cordance with the data set and 12 methodology established by the 13 Secretary under subparagraph 14 (B)(ii). 15 ‘‘(ii) NONAPPLICABILITY OF RULE- 16 MAKING.—Any update described in this 17 subparagraph shall not be subject to the 18 requirements of notice and comment rule- 19 making under section 553 of title 5, 20 United States Code. 21 ‘‘(D) NOTICE REQUIREMENT.—Not later 22 than 60 days before a revised salary threshold 23 under this paragraph takes effect, the Secretary 24 shall publish a notice announcing the amount in 25 VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS 6 •HR 3197 IH the Federal Register and on the internet 1 website of the Department of Labor. 2 ‘‘(3) DUTIES TEST.—The Secretary shall, in 3 addition to the requirement under paragraph (1), 4 continue to require employees to satisfy a duties 5 test, as prescribed by the Secretary, in defining and 6 delimiting the terms described in subsection (a)(1).’’. 7 (b) PUBLICATION OF EARNINGS.—Not later than 21 8 days after the end of each calendar quarter, the Bureau 9 of Labor Statistics shall publish on its public website, for 10 each week of such quarter, data on the weekly earnings 11 of nonhourly, full-time salaried workers by census region 12 (as designated by the Bureau of the Census). 13 (c) EFFECTIVE DATE.—This Act, and the amend- 14 ments made by this Act, shall take effect on the first day 15 of the third month that begins after the date of enactment 16 of this Act. 17 Æ VerDate Sep 11 2014 04:24 Jun 14, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3197.IH H3197 kjohnson on DSK79L0C42 with BILLS