The Biden administration has proposed a new rule that would make over 3 million workers eligible for overtime pay. This update to the Fair Labor Standards Act rules specifically targets executive, administrative, and professional employees.
Under the proposed rule, workers earning about $55,000 a year or below would now qualify for overtime. This is a significant increase from the current threshold of $35,568 a year, which was established by the Trump administration in 2019, up from $23,660.
According to the Labor Department, an additional 3.6 million workers would be eligible for overtime if this proposal becomes law. However, it's important to note that this new rule may face opposition from business groups. In the past, similar regulations raised concerns among these groups. In fact, when Biden was vice president during the Obama administration, he attempted to increase the threshold to over $47,000 but faced successful legal challenges.
The proposal is now open for public comment for a period of 60 days. This marks an opportunity for all interested parties to provide their input on this potential expansion of overtime eligibility.
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