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Biden Rule Raises Overtime Pay Threshold to $58,656, Affecting 4 Million Workers from Jan 1

Apr 23, 2024, 05:26 PM

The Biden administration has finalized a new Department of Labor rule that significantly raises the overtime pay threshold for salaried workers in the United States. Effective from January 1, the updated rule mandates that employees earning less than $58,656 annually must receive overtime pay at a rate of time-and-a-half for hours worked beyond 40 per week. This change increases the threshold from the previous $35,568, set during the Trump administration, and extends overtime protections to an estimated 4 million workers. Announced on April 23, the rule will automatically increase the threshold and has faced opposition from Republican and business communities but has been praised by labor groups and Democratic leaders as a substantial improvement for workers' compensation.