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New Biden Regulation Extends Overtime Eligibility to Millions of Salaried Employees

President Biden (Credits: Poynter)

The Biden administration revealed a new rule on Tuesday aimed at ensuring fair compensation for workers earning annual salaries of around $59,000 or less by adjusting the salary thresholds for federal overtime pay requirements.

According to the Labor Department, the rule will raise the salary thresholds required to exempt salaried workers from overtime pay. Starting in July, the threshold will increase to $43,888, followed by a further rise to $58,656 in January 2025.

Julie Su (Credits: The Hill)

Acting Labor Secretary Julie Su emphasized that the new rule aims to uphold the principle that employees who work more than 40 hours per week should receive additional compensation for their time.

Su stated that it’s unacceptable for lower-paid salaried workers to put in the same hours as their hourly counterparts without extra pay, often sacrificing time with their families.

Under the new rule, beginning in July 2027, the salary thresholds will be updated every three years based on current wage data to ensure that they remain in line with economic conditions.

President Joe Biden speaks about his economic agenda at Flex LTD, Thursday, July 6, 2023, in West Columbia, S.C. (AP Photo/Evan Vucci)

Senator Patty Murray (D-Wash.), former chair of the Senate Committee on Health, Education, Labor, and Pensions, praised the initiative, noting that it could seriously improve the lives of over 4 million workers.

She commended the Biden administration’s focus on enhancing the well-being of American workers since taking office, describing the new rule as another crucial step in that direction.

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