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Department of Labor proposes overtime pay eligibility expansion

By Brock Huffstutler

September 3, 2023

Under a rule proposed by the Biden administration, salaried workers making $55,000 or less would be eligible for time-and-a-half pay if they log more than 40 hours a week.

The U.S. Department of Labor (DOL) has reported that the proposed new rule would raise the annual salary threshold from the current $35,568, which would extend overtime eligibility to 3.6 million more workers.

The DOL also has said it wants to begin automatically raising the overtime threshold every three years to reflect earnings data and to allow the level to be adjusted for inflation.

The new proposal launches a regulatory process to formally change the current rule and includes a 60-day public comment period.

The current salary threshold was set in 2020 during the Trump administration and represented the first raise in the rate since 2004.

To learn more about the proposal, click here.