Biden Raises Overtime Pay Threshold, Benefiting Millions of Salaried Workers

The Biden administration has finalized a new rule that will significantly expand overtime pay eligibility for salaried workers in the United States. Starting July 1, employers will be required to pay overtime to salaried workers who make less than $43,888 a year in certain executive, administrative, and professional roles. This cap will then rise to $58,656 by the start of 2025. The new rule also expands overtime eligibility for some highly-compensated workers. The Labor Department estimates that 4 million lower-paid salary workers who are exempt under current regulations will become eligible for overtime protections in the first year under the new rule. Critics have argued that the new regulation could saddle companies with new costs, while advocates have applauded the administration’s move as overdue.

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