Biden Expands Overtime Protections for 1 Million Workers

The Biden administration has extended overtime protections for one million workers earning less than $43,888 a year, with plans to expand coverage to an additional 3 million workers by 2025. President Biden emphasized the importance of fair pay for a hard day’s work. The Fair Labor Standards Act ensures that hourly workers in the U.S. receive overtime pay of at least one and a half times their regular rate for hours worked over 40 in a week. The recent increase in the salary threshold to $43,888 annually reflects a change from the previous threshold of $35,568. These updates follow a rule finalized in April, with further extensions scheduled for 2025. The Department of Labor also provides protections for highly compensated employees, with the threshold now set at $132,964 per year. The overtime threshold is set to rise to $58,656 in 2025, with updates every three years based on current wage data. Acting Labor Secretary Julie Su emphasized the importance of maintaining a fair balance in the workplace and ensuring that lower-paid salaried workers are protected by expanded overtime regulations. Certain professions, such as doctors, lawyers, and teachers, may still be exempt from these standards. Employers can also factor in bonuses and incentive payments when determining exemptable salary levels.

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