In a move that could affect millions of workers, the Biden administration announced Wednesday that it was proposing to substantially increase the cutoff below which most salaried workers automatically receive time-and-a-half overtime pay.
Under the proposed rule, issued by the Labor Department, the cutoff for receiving overtime pay after 40 hours a week would rise to about $55,000 a year from about $35,500, a level that was set during the Trump administration.
About 3.6 million salaried workers who fall between the current cutoff and the new one would effectively gain overtime pay eligibility under the proposed rule, the department said.
Some employers may choose to raise workers’ pay above $55,000 to avoid paying overtime.
Julie Su, the department’s acting secretary, said in a statement that the rule “would help restore workers’ economic security by giving millions more salaried workers the right to overtime protections.”
Persons:
Biden, Trump, Julie Su
Organizations:
Labor Department