Sponsors (31)
The bill substantially raises overtime pay to boost incomes and reduce excessive hours for workers, but it also raises employer labor costs that could prompt reduced hiring/hours, higher consumer prices, or employer avoidance strategies.
Overtime-eligible workers — especially middle- and low-wage employees and healthcare workers — would receive double pay for overtime hours (up from time-and-a-half), increasing take-home pay and income stability for households that regularly work overtime.
Higher overtime pay creates an incentive for employers to reduce reliance on excessive hours by hiring additional staff or changing schedules, which can improve worker health and work–life balance (notably in healthcare settings).
Raising overtime pay increases employers' payroll costs, which may lead some businesses—particularly small firms—to cut hours, hire fewer workers, or pass costs on to consumers through higher prices.
Employers may respond by reclassifying employees, shifting roles to part-time, or reducing benefits to avoid higher overtime costs, which can reduce earnings and protections for affected workers.
Based on analysis of 2 sections of legislative text.
Raises the FLSA overtime pay multiplier from 1.5 times to 2 times pay for covered overtime hours.
Official title: 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 by Greg Casar · Last progress June 9, 2026
Increases the overtime pay rate under the Fair Labor Standards Act from time-and-a-half to double pay for covered overtime hours. The change updates statutory wording so overtime premium calculations use a 2.0 multiplier instead of 1.5 and becomes effective 180 days after enactment. This affects how much eligible employees must be paid for overtime and alters pay costs and payroll calculations for employers covered by the FLSA.