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
Mar 26, 2026
How Old is Today's Housing Stock?New home construction faces headwinds such as rising material costs, a persistent labor shortage, and elevated interest rates. These challenges have contributed to an insufficient supply of new construction, making the nation’s owner-occupied housing stock significantly older over time.
Mar 25, 2026
New Electrical Code Change for Kitchen Islands: What Builders Need to KnowFor some jurisdictions, the recent revisions to the 2023 National Electrical Code (NEC), specifically Section 210.52(C), change how receptacles can be installed in kitchen islands and peninsulas. But builders, designers, and electricians can consider alternative ways to provide power to kitchen islands.
Latest Economic News
Mar 26, 2026
State/Local Property Tax Revenue Rises Past $210 Billion in the Fourth QuarterProperty tax revenue collected by state and local governments rose for the ninth consecutive quarter according to the Census Bureau’s quarterly summary of state and local tax revenue.
Mar 25, 2026
Age of Housing Stock by StateAccording to the latest data from the 2024 American Community Survey (ACS), the median age of owner-occupied homes has reached 42 years old. The age of the housing stock is an important remodeling market indicator.
Mar 24, 2026
Almost Half of the Owner-Occupied Homes Built Before 1980Around 47% of the U.S. housing stock was built in the 1980s and earlier. The median age of owner-occupied homes climbed to 42 years old in 2024, up from 31 in 2005 according to the latest data from the American Community Survey.