Biden DOL overtime rule extends salary threshold 1 million more workers eligible for time-and-a-half

The Biden Department of Labor's new overtime rule takes effect, raising the salary threshold below which workers are automatically entitled to overtime pay for working more than 40 hours per week. On July 1, 2024, the threshold rises to $43,888 per year ($844 per week), making 1 million additional workers immediately eligible for overtime. A second increase on January 1, 2025, raises the threshold to $58,656 annually, covering another 3 million workers, for a total of 4 million newly protected workers. The rule reverses Trump-era limitations and is the largest expansion of overtime protections in decades. Courts later overturn the rule in November 2024, but the administration defends the policy as essential to fair wages.