A new federal rule will expand eligibility for overtime pay to millions more workers in the U.S.
Although most hourly workers in the country are already entitled to overtime pay, salaried employees in executive, administrative and professional roles are often exempt, unless they make less than a certain amount in salary, according to The Washington Post.
The current salary threshold for the overtime exemption is $35,568, meaning salaried workers who make less than that amount qualify for overtime pay, but those making more do not, according to Bloomberg Law.
The new rule will raise that threshold, expanding eligible for overtime pay to more people.
The threshold will increase to $43,888 on July 1. It will then rise again to $58,656 in January.
The change will benefit about 4 million workers, making them eligible for time-and-a-half wages when they work more than 40 hours a week for the first time, according to Bloomberg.
The rule will boost wages for many workers in low-wage but salaried occupations, according to the Post. Many of those who will benefit work in fields including hospitality, health care, finance, manufacturing and retail.
“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid for that time,” Acting Labor Secretary Julie Su said in a statement, according to USA Today. “So 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 is unacceptable.”
Worker advocacy groups and Democrats have applauded the rule for ensuring that the lowest earning workers get more of their time back, or are paid fairly for working extra hours, Bloomberg said.
Business associations and conservative lawmakers have been critical, according to the Post said. Challenges are expected.
“This rule is the latest unnecessary and burdensome regulation from the Biden administration targeting small businesses,” Michael Layman, senior vice president of government relations and public affairs at the International Franchise Association said in a statement, according to the Post.