The Biden administration has announced a final rule that would increase the maximum salary that allows executive, administrative or professional employees to receive overtime pay. Starting on July 1, 2024, the salary threshold will increase to $43,888. This is up from the $35,568 threshold based on the past administration’s methodology in the 2019 overtime rule update, the U.S. Department of Labor said in a statement. The salary threshold will increase again to $58,656 on Jan. 1, 2025. On Jan. 1, 2025, the rule’s new methodology will take effect, which will result in an additional increase. The rule will also adjust the threshold for the highly compensated employees, the Labor Department said. The salary thresholds will be updated every three years starting on July 1, 2027, according to the agency. The thresholds will be updated by applying up-to-date wage data to determine new salary levels. According to the Department of Labor, key provisions of the final rule also include: “This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” acting U.S. Labor Secretary Julie Su said in a statement. “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay,” Su continued. “That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.” The Biden administration’s decision to raise the overtime pay threshold is a significant victory for workers’ rights advocates. The increase will ensure that more salaried employees are eligible for overtime pay, which can make a real difference in their lives. The rule is expected to take effect on July 1, 2024, and will impact millions of workers across the country.
Biden Administration Raises Overtime Pay Threshold for Salaried Employees
