New Rule Aims to Direct Overtime Pay to 3.6 Million Workers

Mindy Cohn 

The proposal of a new rule today by the Biden administration would make 3.6 million more workers eligible for overtime pay.

The proposal would require employers to pay overtime to white-collar workers earning under $55,000 annually. The new rule would also require the overtime salary threshold to be updated every three years. 

While most hourly workers are entitled to overtime pay of time-and-a-half after working more than 40 hours a week, salaried administrators and professionals do not get overtime unless they earn below the present threshold of $35,568, which has been in place since 2019. 

If passed, the rule won't take effect for months, at which time it will impact numerous industries. Businesses have suggested they will convert salaried workers to hourly ones to save money.