Qualified lower-paid workers who earn a salary but work more than 40 hours in a week will soon be entitled to guaranteed time-and-a-half pay, thanks to a new labor rule announced by the Biden-Harris administration.
This rule will raise the salary thresholds necessary to exempt a “salaried bona fide executive, administrative, or professional employee from federal overtime pay requirements.”
The salary threshold will increase in two stages. The first increase will take place on July 1, bringing the annual salary equivalent to $43,888. This is a significant jump from the current threshold of $35,568. Following this, on January 1, 2025, the threshold will rise again, reaching $58,656.
The Department of Labor has released this information in a blog with stock photos providing clarity on the matter.
