June 13, 2023
Overtime Pay Expansion Impacts: Update
The Restoring Overtime Pay Act of 2023, recently introduced in the Senate, would increase the annual salary threshold for those who qualify for overtime pay from $36,000–$45,000. In new research, Labor Market Policy Analyst Isabella Hindley and Data and Policy Analyst Tom Lee examine 2021 data from the Survey of Income and Program Participation to determine how many workers would actually benefit from the overtime pay expansion.
Hindley and Lee conclude:
The Restoring Overtime Pay Act of 2023 would do little to assist lower- and middle-income workers and families. The bill would impact only 1.1 million workers, the majority of whom are not at the lower end of the income distribution. Of the impacted workers, 6.6 percent are in poverty, 32.6 percent are single- income households, and 64.2 percent do not have any dependent children. Instead of pursuing legislation that helps few low-income households, policymakers should focus on addressing the root causes of stagnant wages such as poor economic growth and an inefficient labor market.