The U.S. Department of Labor has implemented a final rule that significantly increases the salary threshold for overtime eligibility. This change will expand overtime pay to approximately 4 million more workers, benefiting lower-paid salaried employees who perform similar duties as their hourly counterparts. The new rule is expected to result in an income transfer of approximately $1.5 billion from employers to workers within its first year.
The U.S. Department of Labor has released a final rule expanding overtime pay eligibility to millions of salaried workers. The new rule raises the salary threshold in two stages, making an estimated 4 million additional workers eligible for overtime. The rule is expected to transfer $1.5 billion from employers to workers in its first year.
The Biden administration has issued new rules that could allow many salaried workers to start collecting overtime pay. The Department of Labor announced it is raising the minimum salary threshold for exempt employees from $35,568 per year to $43,888 per year in July. The department also said the threshold will go up to $58,656, effective Jan. 1, 2025. This means that people making under $58,656 will be eligible for overtime in 2025.
The Biden administration has announced a new rule that will significantly increase the maximum salary that allows executive, administrative, or professional employees to receive overtime pay. Effective July 1, 2024, the salary threshold will increase to $43,888, up from the current $35,568. It will further increase to $58,656 on January 1, 2025, and will be adjusted every three years thereafter based on wage data.
The U.S. Department of Labor (DOL) has expanded overtime eligibility to approximately 4 million salaried employees, increasing the minimum annual salary threshold effective January 1, 2023, and increasing it again on January 1, 2025. WorkMoney, a non-profit organization advocating for higher incomes and lower expenses for Americans, played a significant role in this decision. The organization gathered input from members who shared their personal experiences and perspectives, emphasizing the importance of fair compensation for overtime work.
