New labor rule mandates time-and-a-half overtime pay for lower-paid salaried employees [Video]

Qualified lower-paid workers who earn a salary but work more than 40 hours in a week will soon receive guaranteed time-and-a-half pay as part of new labor rule announced by the Biden-Harris administration. The rule will increase the salary thresholds required in order to exempt a “salaried bona fide executive, administrative or professional employee from federal overtime pay requirements,” according to a release from the Department of Labor.

The threshold will increase in two stages with the first jump starting on July 1. Starting on that date, the threshold increases to the equivalent of an annual salary of $43,888, up from the current annual salary threshold of $35,568. Then on Jan. 1, 2025, the threshold jumps even higher to $58,656.

The rule ensures that non-exempt employees (those who make less than the salary threshold) who work more than 40 hours a week will be paid time-and-a-half for every hour over …