Sponsors (5)
The bill increases pay and income stability for overtime workers by doubling overtime pay, at the cost of higher employer labor expenses that may prompt reduced hours, fewer hires, or higher prices.
Overtime-eligible hourly workers (e.g., middle-class families who work extra hours) will receive higher take-home pay because overtime pay increases from 1.5x to 2x, directly boosting earnings for overtime hours.
Hourly workers who rely on overtime will experience greater wage fairness and reduced income volatility, improving financial stability for families dependent on overtime earnings.
Employers face materially higher labor costs for overtime, which could lead some businesses to reduce overtime availability, cut employee hours, hire fewer workers, shift schedules, or raise prices — reducing work opportunities for overtime-reliant employees and increasing costs for consumers.
Based on analysis of 2 sections of legislative text.
Raises the FLSA overtime pay multiplier from 1.5x to 2.0x for covered overtime hours.
Official title: 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 August 5, 2026 by Ruben Gallego · Last progress August 5, 2026
Increases the overtime pay rate under the Fair Labor Standards Act from one-and-one-half times regular pay to double pay for covered overtime hours. The change applies where the law currently specifies "one and one-half" and becomes effective 180 days after enactment. This makes straight time-to-overtime conversion uniformly 2x for covered employees and affects employers who must pay overtime under the FLSA and the employees who receive that overtime pay.