In April, the Biden administration finalized a new rule set to make millions more salaried workers eligible for overtime pay in the U.S., marking the largest expansion in federal overtime eligibility in decades.
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. That cap will then rise to $58,656 by the start of 2025.
“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. That is unacceptable,” acting Secretary of Labor Julie Su said in a prepared statement. She added that the administration was “following through on our promise to raise the bar.”
The Labor Department estimates that four 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. An additional 292,900 higher-compensated workers are also expected to get overtime entitlements.
Wyatte Grantham-Philips, AP