Workers earning up to $58K a year could soon become eligible for overtime pay

Millions more Americans could become eligible for overtime pay.

The Biden-Harris administration announced a final rule Tuesday that raises the minimum salary threshold to qualify for time-and-a-half pay after 40 hours of work in a week.

Proponents say the new limit will mean lower-paid workers are fairly compensated for long hours, and business groups are expected to legally challenge it.

Here’s what to know:

The new salary limits

Starting July 1, 2024, people earning less than $43,888 per year, or $844 per week, would be eligible for overtime pay.

By Jan. 1, 2025, that salary threshold would increase to $58,656 per year, or $1,128 per week.