The Biden-Harris administration has completed a regulation to raise the pay requirements for overtime eligibility, providing greater protections for millions of workers.

The Biden-Harris administration has announced a final rule that aims to ensure fair pay for lower-paid salaried workers who work long hours. This rule will go into effect on July 1, 2024, and will increase the salary thresholds required to exempt a salaried employee from federal overtime pay requirements. The new salary threshold will be equivalent to an annual salary of $43,888 and will increase to $58,656 on January 1, 2025. This is a significant increase from the current threshold of $35,568, which was set by the previous administration in 2019.

The rule also includes adjustments for highly compensated employees, with salary thresholds being updated every three years starting on July 1, 2027. This will be done by using up-to-date wage data to determine new salary levels. The Department of Labor conducted extensive engagement with employers, workers, unions, and other stakeholders before issuing the proposed rule in September 2023. They considered over 33,000 comments in developing the final rule.

The updated rule defines and delimits who is considered a bona fide executive, administrative, or professional employee exempt from the Fair Labor Standards Act’s overtime protections. This will ensure that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families. The Department of Labor aims to provide clear and predictable guidance for employers on how to pay employees for overtime hours and to provide more economic security to the millions of people working long hours without overtime pay.

Some key provisions of the final rule include expanding overtime protections to lower-paid salaried workers and giving more workers pay or valuable time back with their families. The rule also establishes regular updates to the salary thresholds to ensure predictability for employers and employees. This will help to address the issue of lower-paid salaried workers doing the same job as their hourly counterparts but not receiving additional pay for working longer hours.

In conclusion, the Biden-Harris administration’s final rule on overtime pay for lower-paid salaried workers is a step towards ensuring fair pay and economic security for workers. By increasing the salary thresholds and providing regular updates, the rule aims to provide more time and financial stability for workers and their families.  

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