Biden Administration Finalizes New Overtime Pay Rule, Expanding Eligibility for Millions

The rule, effective from July 2024, raises the salary threshold for overtime pay, making an estimated 4 million more workers eligible.

The new rule increases the salary threshold for overtime eligibility from $35,568 to $43,888 starting July 2024, and to $58,656 by January 2025.
Acting Secretary of Labor Julie Su emphasized that the rule aims to ensure fair compensation for lower-paid salaried workers.
The rule will be updated every three years starting in 2027 to reflect wage data changes, ensuring ongoing relevance.
Business groups have expressed concerns about increased operational costs, with some planning legal challenges.
Labor and worker advocacy groups have praised the rule, viewing it as a crucial step towards fair labor practices.