Expanding Overtime: New Rule Boosts Pay for 4 Million Workers

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A hiring sign is displayed in Riverwoods, Ill., Tuesday, April 16, 2024. The Biden administration has finalized a new rule set to make millions of more salaried workers eligible for overtime pay in the U.S. The move marks the largest expansion in federal overtime eligibility seen in decades. (AP Photo/Nam Y. Huh, File)
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The Biden administration has introduced a new rule that will extend overtime pay to nearly 4 million more salary workers in the U.S., surpassing previous measures. Under this rule, workers earning up to $58,656 annually will now qualify for overtime pay if they work over 40 hours weekly.

The change is a significant jump from the current threshold of about $35,500 set by the previous administration. The acting secretary of Labor, Julie Su, stated that the move aims to ensure that workers are compensated fairly for working long hours. The salary threshold will further rise by January 2025 and will adjust every three years starting in 2027, reflecting wage growth.

The expansion of overtime eligibility is part of the administration’s effort to improve compensation for lower- and middle-income workers, although it has faced criticism from some business groups and is expected to encounter legal challenges.


Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.

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