Biden Admin Resurrects Failed Obama-Era Policy To Increase Overtime Pay Eligibility

The Biden administration finalized a new rule on Monday that increases the overtime pay threshold for salary workers, despite a similar rule being struck down by a federal judge during the Obama administration.

Starting on July 1, 2024, the Department of Labor (DOL) is increasing its annual salary threshold for those eligible to receive time-and-a-half pay when working more than 40 hours per week from $35,568 to $43,888, according to an announcement from the DOL. The Obama administration tried to issue a similar rule in 2016, raising the threshold for eligibility for overtime pay to $47,000 per year but was struck down by a federal judge in Texas, who said that the increase was too high and that it included some management workers who are typically exempt from overtime pay protections.