Biden Administration Expands Threshold for Overtime Pay Eligibility
Summary from the AllSides News Team
The Department of Labor expanded the eligibility for overtime pay for Americans working over 40 hours per week.
Details: This change provides lower-paid workers with higher compensation for long hours, and is expected to embroil the administration in legal disputes with business groups. Starting July 1, 2024, individuals making less than $43,888 per year, or $844 per week, will be entitled to overtime pay. By Jan. 1, 2025, the salary threshold will increase to $58,656 per year, or $1,128 per week. The rule will adjust the salary eligibility level every three years, starting in 2027, to keep up with changing labor market dynamics and wages.
For Context: The change, which is expected to affect around 4.3 million workers, is an extension of an Obama-era initiative that was eventually struck down in court. Notably, 56% of the workers expected to be affected by this rule change are women and 24% are workers of color.
How the Media Covered It: CNBC (Center bias) focusing on the specifics of the initiative and the potential impact on workers. CBS News (Lean Left bias) highlighted the potential $1.5 billion increase in collective pay for workers and the benefits suggested by labor advocates. The Daily Caller (Right bias) took a more critical stance, noting that a similar rule issued during the Obama administration was blocked by a federal judge, expressing skepticism about the current administration's approach. This summary was developed with the help of AllSides' AI technology.
Featured Coverage of this Story
From the Left
Biden administration expands overtime pay to cover 4.3 million more workers. Here's who qualifies.
About 4.3 million U.S. workers who previously didn't qualify for overtime pay could soon receive time-and-a-half for working more than 40 hours a week thanks to a new rule from the Biden administration.
The U.S. Department of Labor on Tuesday unveiled a new rule that will extend overtime pay to salaried workers who earn less than $1,128 per week, or $58,656 annually. Previously, only workers who made $684 or less each week, or $35,568 annually, were eligible for OT.
Businesses are required to pay workers 1.5 times their pay if they...
From the Center
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...
From the Right
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...
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