The Biden administration has announced a new rule that will extend mandatory overtime pay to an estimated 4 million salaried workers. This rule will require employers to pay overtime premiums to workers earning less than $1,128 per week when they work more than 40 hours.
The previous salary threshold for overtime pay was set at $35,500 by the Trump administration. However, the new rule significantly raises this threshold and will also include automatic adjustments every three years to keep up with inflation.
Workers who earn a salary above the threshold may still be eligible for overtime pay if they do not primarily perform management duties. States like California and New York already have higher salary thresholds for overtime eligibility.
While the new rule has been praised by unions and worker advocacy groups, business groups have expressed concerns about the economic impact it may have. There are also worries that the rule could harm lower-paid supervisors and professionals.
The AFL-CIO, a federation of labor unions, has applauded the Biden administration for restoring overtime protections that were “gutted” by the Trump administration. However, it is expected that the new rule will face legal challenges similar to the ones faced by the Obama-era rule.
Overall, the new rule is expected to provide additional protections for millions of workers and ensure that they are fairly compensated for their hard work. It remains to be seen how this rule will be implemented and what impact it will have on both workers and businesses.
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