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
Jan 02, 2026
Trump Delays Higher Tariffs on Furniture, Kitchen Cabinets for One YearPresident Trump has announced he will be rolling back higher tariffs on furniture, kitchen cabinets and vanities that were set to go into effect on Jan. 1, 2026, until Jan. 1, 2027.
Jan 02, 2026
FHA’s MMI Fund Capital Ratio Remained Solid in Fiscal Year 2025The capital reserve ratio for the Federal Housing Administration’s Mutual Mortgage Insurance Fund ended the fiscal year at 11.47% — unchanged from the capital ratio for fiscal year 2024 and well above the congressionally mandated 2% capital ratio.
Latest Economic News
Dec 22, 2025
State-Level Employment Situation: September 2025In September 2025, nonfarm payroll employment was largely unchanged across states on a monthly basis, with a limited number of states seeing statistically significant increases or decreases. This reflects generally stable job counts across states despite broader labor market fluctuations. The data were impacted by collection delays due to the federal government shutdown.
Dec 19, 2025
Existing Home Sales Edge Higher in NovemberExisting home sales rose for the third consecutive month in November as lower mortgage rates continued to boost home sales, according to the National Association of Realtors (NAR). However, the increase remained modest as mortgage rates still stayed above 6% while down from recent highs. The weakening job market also weighed on buyer activity.
Dec 18, 2025
Lumber Capacity Lower Midway Through 2025Sawmill production has remained essentially flat over the past two years, according to the Federal Reserve G.17 Industrial Production report. This most recent data release contained an annual revision, which resulted in higher estimates for both production and capacity in U.S. sawmills.