The Biden administration announced a rule Tuesday to ensure that workers with yearly wages of $59,000 or less are adequately rewarded when working overtime.
The Labor Department stated that the rule would raise the salary thresholds required to exempt salaried employees from federal overtime compensation rules.
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Starting in July, the office announced that the wage level would climb to $43,888, then to $58,656 in January 2025.
“The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update,” the office stated in a statement.
Acting Labor Secretary Julie Su said in a statement that the new rule will “restore the promise to workers that if you work more than 40 hours per 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,” she went on to say. “That is unacceptable.”
As part of the new rule, the Labor Department stated that salary criteria would “update every three years by applying up-to-date wage data to determine new salary levels,” commencing in July 2027.
Sen. Patty Murray (D-Wash.), former chair of the Senate Committee on Health, Education, Labor, and Pensions, praised the decision in a statement Tuesday, saying it may “make a material difference in the lives of over 4 million workers.”
“From Day One, the Biden administration has been laser-focused on improving the lives of working Americans, and this rule is one more important step in that direction,” she said in a statement.
