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 06, 2026
NAHB Commends Court Ruling Vacating HUD 2021 IECC MandateNAHB Chairman Bill Owens issued the following statement after the Eastern District Court of Texas issued its decision in a lawsuit brought by NAHB and 15 states challenging the legality of the HUD and USDA rule imposing the 2021 International Energy Conservation Code and the 2019 ASHRAE 90.1 standard on certain housing programs.
Mar 06, 2026
Bill Truex Seeks Certification as a Candidate for 2028 NAHB Third Vice ChairmanThe NAHB Nominations Committee announces that Bill Truex, president, Truex Preferred Construction in Englewood, FL, has submitted his Letter of Intent to seek certification as a candidate for NAHB 2028 Third Vice Chairman.
Latest Economic News
Mar 06, 2026
U.S. Economy Loses 92,000 Jobs in FebruaryThe U.S. labor market weakened in February, as payroll employment declined and the unemployment rate rose to 4.4%. The cooling labor market could place the Federal Reserve in a challenging position as policymakers weigh slower job growth against inflation pressures from rising oil prices.
Mar 05, 2026
Builders Identify Key Long-Term Forces Shaping Housing Demand and Industry HealthHome builders are keenly aware of the complex long-term outlook ahead for the home building industry. A recent NAHB/Wells Fargo HMI survey asked builders to assess the impact of 14 major trends and forces on the health of the industry and housing demand over the next 10 years.
Mar 05, 2026
Affordability Posts Mild Gains in Second Half of 2025 but Crisis ContinuesThough new and existing homes remain largely unaffordable, the needle moved slightly in the right direction in the second half of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).