Labor Department Proposes Changes to Overtime Pay Rules for Certain Salaried Workers
Late last week, the U.S. Department of Labor (DOL) issued a proposed rulemaking that would extend eligibility for overtime pay to roughly 3.6 million salaried workers.
Specifically, the agency’s proposal would increase the current salary level for determining overtime pay requirements for executive, administrative, professional, outside sales, and computer employees from $684 a week ($35,568 annualized) to $1,059 a week ($55,068 annualized) – a nearly 55% increase.
The rulemaking also proposes to put in place automatic updates to the salary level every three years to reflect current earnings data and inflation.
Under the Fair Labor Standards Act, salaried workers are exempt from overtime pay requirements if a worker earns at or above a defined salary level called the “standard salary.” Under the proposal, salaried workers — which often include construction supervisors — earning less than $55,068 per year will be eligible to receive the standard overtime rate for hours worked over 40 in a workweek.
According to a DOL news release, the agency held more than 25 listening sessions, several of which NAHB members participated, to help inform the proposed rule. During these sessions, however, NAHB members questioned the timing of a new salary threshold, as the latest update went into effect less than four years ago.
Members also informed the agency that, while the construction industry is experiencing a severe workforce shortage, an adjustment to the salary level would likely result in challenges attracting and retaining these workers.
DOL is accepting comments on the proposed rule through Nov. 7. NAHB has submitted a request to the agency for the public comment period to stay open for an additional 60 days.
NAHB will submit comments in response to the DOL proposal and continue to provide updates throughout the rulemaking process.
Latest from NAHBNow
May 06, 2026
Mortgage Rates, Inflation and Yields All Rise in AprilMortgage rates continued to increase in April as ceasefire negotiations remain inconclusive. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.34% in April, 16 basis points (bps) higher than March.
May 05, 2026
Philadelphia BIA Member Shifts How Local Community Views the TradesFor Jordan Parisse-Ferrarini, a member of the Building Industry Association of Philadelphia, a career that began with his family’s small business and tools from a pawn shop has flourished into multiple companies, numerous advisory roles and a passion for developing the next generation of skilled trades professionals.
Latest Economic News
May 04, 2026
Mortgage Rates Climb as Inflation Rebounds and Yields RiseMortgage rates continued to increase in April as ceasefire negotiations remain inconclusive. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.34% in April, 16 basis points (bps) higher than March. The average 15-year rate also increased by 13 bps to 5.69%. Despite the recent increase, both rates remain lower than a year ago by 39 bps and 21 bps, respectively.
May 01, 2026
Student Housing Construction Investment Holds Steady in the First Quarter of 2026Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.
Apr 30, 2026
Housing’s Share of GDP Dips Below 16% for First Time Since 2019Housing’s share of the economy was 15.9% in the first quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.0% in the fourth quarter and is lower than 16.5% registered just one year ago.