Array
Millions of salaried workers will soon qualify for overtime pay under a final rule released by the US Department of Labor on Tuesday.
The new rule raises the salary threshold under which salaried employees are eligible for overtime in two stages. The threshold will increase to the equivalent of an annual salary of $43,888, or $844 a week, starting July 1, and then to $58,656, or $1,128 a week, on January 1, 2025.
About 4 million more workers will qualify for overtime when the rule is fully implemented in January, the agency estimates. In its first year, the rule is expected to result in an income transfer of about $1.5 billion from employers to workers, mainly from new overtime premiums or from pay raises to maintain the exempt status of some affected employees.
„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 Labor Secretary Julie Su said in a statement. „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.“
The current threshold is $35,568 a year, or $684 per week, which was put in place by the Trump administration in 2019.
