Overtime Pay Increase Eligibility: The United States government’s most recent labor reform will benefit 4.3 million workers.
Earlier this week, the U.S. Department of Labor published a new rule expanding overtime pay to lower-wage workers.
Up until now, the Fair Labor Standards Act (FLSA) covered only workers earning less than $684 a week or $35,568 a year.
BREAKING: The Department of Labor has raised the overtime threshold.
The new rule says that everyone who makes under $58,656 and works over 40 hours a week must be paid time-and-a-half.
That increases the threshold dramatically from $35,568.https://t.co/hUJT7gN6Ul
— More Perfect Union (@MorePerfectUS) April 23, 2024
As a result of the new rule implemented by the Biden-Harris administration, this coverage will be significantly expanded.
For each hour of overtime worked below the FLSA threshold, employees must be paid 1.5 times their salary.
Employers were able to exploit employees above this level because of this.
Salary workers who are not covered by the FLSA could previously work any amount of overtime for the same pay, putting them at a disadvantage with hourly workers.
Overtime pay: how much should you get?
As of July 1, workers earning less than $844 a week or $43,888 a year must also receive 1.5 times their salary for each hour they work overtime.
On January 1, 2025, the new regulations will expand to cover workers earning up to $1,128 per week or $58,656 per year.
A hard day’s work deserves a fair day’s pay. Our new rule will benefit millions of workers, including many who have been working 40+ hours/week without any extra pay, by ensuring they gain overtime protections or a raise in salary or compensation level. https://t.co/ZtFKvh9APd pic.twitter.com/tG5pGh8R5G
— U.S. Department of Labor (@USDOL) April 23, 2024
Executives, administrators, and professionals are not covered by the regulations.
This is why it establishes clear guidelines for avoiding false appointments given to low-ranking employees by some companies to make them appear to be part of the management team, such as “grooming manager” for barbers, “carpet shampoo manager” for cleaning employees, or “director of first impressions” for receptionists.
Also Read: SNAP Benefits Payment Schedule for May 2024
