Salaried workers who have been ineligible for overtime pay would benefit from a proposed Biden administration regulation.
The Department of Labor’s new rule would require employers compensate full-time workers in management, administrative, or other professional roles for any overtime worked if they make less than $55,068 annually. Currently, the salary threshold is $35,568. The change is expected to affect 3.6 million workers.
The rule would also provide automatic changes every three years to the salary level to keep up with changes in earnings. U.S. territories that are subject to the federal minimum wage would have these same overtime protections, which rolls back a Trump administration change made in 2019.
“I’ve heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don’t come anywhere close to compensating them for their sacrifice,” said Acting Secretary of Labor Julie Su in a statement.
The new standard salary level proposed by the agency would be tied to the 35th percentile of weekly earnings of salaried workers in the lowest-wage region of the country. There is voter support for a change in the current regulations. According to a 2022 Data for Progress survey of likely voters, 65% said they either strongly supported or somewhat supported raising the salary threshold for overtime pay.
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