Millions more Americans could soon qualify for overtime pay, thanks to a new rule announced by the Biden-Harris administration. The rule raises the salary threshold for overtime eligibility, meaning lower-paid workers could get paid more fairly for their extra hours.
Starting July 1, 2024, people earning less than $43,888 per year, or $844 per week, would be eligible for overtime pay. By Jan. 1, 2025, that threshold would increase to $58,656 per year, or $1,128 per week.
Acting Secretary of Labor Julie Su explained, “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.”
This change could impact around 4.3 million workers, with 56% being women and 24% workers of color. The move is expected to affect various sectors, including professional and business services, health care, and financial activities.
Meanwhile, the Federal Trade Commission also issued a final rule banning noncompete agreements, which could lead to higher wages and more job opportunities for workers.
Source: CNBC
