New Rule by Biden Administration Raises Salary Threshold for Overtime Eligibility

Tuesday, 23 April 2024, 20:05

The Biden administration announced a new rule aimed at raising the salary thresholds for exemption from federal overtime pay requirements to ensure fair compensation for salaried workers earning approximately $59,000 or less annually. The rule will incrementally raise the salary threshold starting July, reaching $58,656 by January 2025. Acting Labor Secretary Julie Su emphasized the importance of paying salaried workers fairly for overtime work and the impact this rule will have on over 4 million workers.
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New Rule by Biden Administration Raises Salary Threshold for Overtime Eligibility

Overview

The Biden administration announced a rule to ensure fair compensation for salaried workers earning $59,000 or less annually. The Labor Department stated that the rule would raise the salary thresholds for overtime pay exemption.

Key Points

  • Starting July 2022, the salary threshold will be $43,888.
  • It will further increase to $58,656 by January 2025.
  • The rule aims to bridge the wage gap between salaried and hourly workers.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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