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    Home News Overtime pay increase to affect ‘millions’ of Americans
    Overtime pay increase to affect ‘millions’ of Americans
    Business, Nation & World, News
    May 22, 2024

    Overtime pay increase to affect ‘millions’ of Americans

    HARRISBURG (TNS) — A rule which will expand overtime protections will go into effect this summer.

    This change will impact “millions” of United States employees who may see an increase in pay within a matter of months.

    The United States Department of Labor (DOL) announced via an April press release how the Biden-Harris administration expanded these protections “for millions of the nation’s lower-paid salaried workers by increasing the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements.”

    This rule goes into effect as of July 1, and ensures that those making less than $58,656 will receive fair pay for long hours.

    “…the salary threshold will increase to the equivalent of $43,888 and increase to $58,656 on Jan. 1, 2025,” read the release. “The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update.

    “On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.”

    This rule is the result of “extensive engagement” the DOL conducted with numerous employers, workers, unions, and others prior to proposing it in September 2023.

    “The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families,” said Wage and Hour Administrator Jessica Looman.

    “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”

    Tags:

    business business ethics business law economy employee relations employees employment employment compensation expense industrial relations labor labor relations labour law overtime salary social law sociology of work wages and salaries work working conditions workplace
    CLAUDIA DIMURO pennlive.com

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