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Millions of Salaried Workers Set to Get Overtime Pay Boost Under New Biden Rule

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In a significant development, the Biden administration has finalized a rule aimed at expanding overtime pay eligibility for millions of salaried workers across the United States.

Starting July 1, salaried employees earning less than $43,888 a year in certain executive, administrative, and professional positions will be entitled to overtime pay, marking the most substantial increase in federal overtime eligibility in decades. This threshold will further increase to $58,656 by the beginning of 2025.

This move, announced by the Labor Department on Tuesday, is expected to benefit approximately 4 million lower-paid salary workers who are currently exempt under existing regulations.

The adjustment in salary thresholds, scheduled to take effect this summer, follows a methodology established under the Trump administration’s 2019 regulation.

While critics express concerns about potential new costs for companies and exacerbated labor challenges, advocates welcome the overdue measure, noting its importance in addressing workforce disparities.