Biden rule grants overtime pay to 4 million US workers

The administration of U.S. President Joe Biden on Tuesday unveiled a rule extending mandatory overtime pay to an estimated 4 million salaried workers, going even further than an Obama-era rule that was struck down in court.

The U.S. Department of Labor rule will require employers to pay overtime premiums to workers who earn a salary of less than $1,128 per week, or about $58,600 per year, when they work more than 40 hours in a week.

The current salary threshold of about $35,500 per year was set by the Trump administration in a 2020 rule that worker advocates and many Democrats have said did not go far enough.

The rule does not affect overtime requirements for workers who are paid hourly.

Julie Su, the acting secretary of labor and Biden's nominee to fill the post permanently, said in a statement that the rule ensures that workers either earn more money or are paid the same to work fewer hours.

“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," Su said.