The Biden administration on Tuesday announced a new rule that will make millions of salaried workers eligible for overtime pay.
Beginning July 1, 2024, the salary threshold at which executive, administration, and professional employees are exempt from overtime pay will increase to 43,888 from the current $35,568 and by Jan. 1, 2025, go to $58,656.
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
“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Acting Labor Secretary Julie Su. “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. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.”
While the vast majority of hourly workers are entitled to overtime pay under federal law after 40 hours per week, salaried workers generally are not unless their pay falls below a certain level.
Afredo Ortiz, CEO of Job Creators Network, blasted the new overtime mandate.
"The Biden administration's new overtime rule is the latest Democrat attack on American small businesses whose profit margins are already being squeezed by overregulation, inflation, and high credit costs,” he said in a statement. “What’s more, the rule hurts hardworking employees trying to climb the corporate ladder who will find themselves demoted back to hourly positions so employers can avoid associated overtime costs. This especially hurts those who depend on work ethic rather than fancy educations. The next Republican administration should make it a top priority to reverse this new overtime standard."
The National Federation of Independent Business echoed those remarks.
“This rule is another costly hoop for small business owners to jump through," said Beth Milito, executive director the the NFIB's small business legal center. "Small businesses will need to spend valuable time evaluating their workforce to properly adjust salaries or reclassify employees in accordance with this complicated mandate.”