Millions of Workers to Benefit from Biden’s Overtime Pay Increase

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Posted by Eileen Stewart April 25, 2024
Millions of Workers to Benefit from Biden's Overtime Pay Increase

Millions of salaried employees now have additional safeguards for overtime pay thanks to a final rule that the Biden administration implemented.

The rule will increase those workers’ pay for working more than 40 hours per week as of July 1.

“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” Acting Secretary Julie Su stated. “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.”

Furthermore, she stated that the Biden administration is keeping its word to “raise the bar for workers who help lay the foundation for our economic prosperity.”

The new rule will make almost 3.6 million workers eligible for overtime compensation for the first time. The workers’ “management” status and pay scales had previously prevented them from being eligible for overtime.

The wage level that initiates overtime pay will rise as a result of the new rule. On July 1, it will increase from the current $35,568 to $43,888. On January 1, 2025, it rises to $58,656.

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The Labor Department states that starting on July 1, 2027, the new regulation will automatically update the salary overtime threshold every three years for highly compensated employees.

The classifications of executive, administrative, and professional workers excluded from the overtime pay protections provided by the Fair Labor Standards Act are made clearer by the recently enacted regulation.

Labor Department Wage and Hour Administrator Jessica Looman stated, “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”

According to her, it ensures that salaried workers at lower pay receive their well-earned overtime compensation or “much-deserved time back with their families.”

The rule gives workers who are not exempt from overtime regulations the option of taking more time off with their families or receiving time-and-half compensation when they work more than 40 hours per week.

The Fair Labor Standards Act includes provisions protecting overtime compensation for American workers.

It calls for “overtime pay for hours worked over forty in a workweek at a rate not less than time and one-half their regular rates of pay.”

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Eileen Stewart
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With more than two years of expertise in news and analysis, Eileen Stewart is a seasoned reporter. Eileen is a respected voice in this field, well-known for her sharp reporting and insightful analysis. Her writing covers a wide range of subjects, from politics to culture and more.