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 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 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 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 earn less than $43,888 a year in certain executive, administrative, and professional roles. That cap will then rise to $58,656 by the start of 2025.
