The Department of Labor’s Rule To Update Federal Overtime Protections Creates a Fairer System, Says CAP’s Lily Roberts

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Patrick Gaspard President and Chief Executive Officer at Center for American Progress | Facebook Website

The Department of Labor’s Rule To Update Federal Overtime Protections Creates a Fairer System, Says CAP’s Lily Roberts

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Washington, D.C. — Today, the U.S. Department of Labor (DOL) issued a final rule to update federal overtime protections for American workers. In response, Lily Roberts, managing director for the Inclusive Growth department at the Center for American Progress, highlighted the significance of this update.

"Millions of American workers have been unfairly excluded from overtime pay because of an egregiously low standard set by the Trump administration in 2019. Without an appropriate overtime standard, employers have been able to make low- and middle-wage employees work more than 40 hours a week for no additional pay," said Roberts.

Roberts praised the Biden administration's efforts, stating, "Today’s rule is the latest action in the Biden administration’s continued efforts to ensure that people are paid fairly for hard work." She further explained the key aspects of the new rule, emphasizing the importance of the changes.

"By quickly starting with a July 2024 update to the current threshold to account for inflation since 2019 and then raising the overtime eligibility salary threshold and setting that salary threshold to automatically update every three years, DOL is creating a fairer, more predictable system, in which workers know that their wages will keep up with routine increases in cost of living and employers can plan for future staffing needs," Roberts added.

The Department of Labor's initiative aims to establish a system that provides workers with a fair compensation structure while offering employers clarity and predictability in managing their workforce. For further inquiries or to engage with an expert on this matter, interested parties can reach out to Sarah Nadeau at [email protected].

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