Julie A. Su Secretary of Labor | Twitter Website
WASHINGTON – The Biden-Harris administration has finalized a rule aimed at increasing compensation thresholds for overtime eligibility, expanding protections for millions of workers across the nation.
Effective July 1, 2024, the new rule will see the salary threshold for exempting salaried employees from federal overtime pay requirements rise to an annual salary of $43,888, with a further increase to $58,656 on Jan. 1, 2025. This initiative aims to provide more equitable treatment for lower-paid salaried workers in comparison to their hourly counterparts.
Acting Secretary Julie Su emphasized the significance of this new rule, stating, “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. 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.”
Wage and Hour Administrator Jessica Looman echoed this sentiment, highlighting the importance of ensuring that lower-paid salaried workers receive fair compensation for their work. Looman stated, “The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families.”
The rule, which will go into effect on July 1, 2024, aims to provide clarity and predictability for both employers and employees regarding overtime pay. By regularly updating salary thresholds every three years to reflect changes in earnings, the administration seeks to prevent the erosion of overtime protections over time.
This move by the Biden-Harris administration underscores its commitment to supporting workers and enhancing economic prosperity. By expanding overtime protections and ensuring fair compensation for lower-paid salaried workers, the administration is taking concrete steps to prioritize the well-being of millions of hardworking individuals across the country.
