Overtime pay would cover millions more workers under proposed Biden rule

Overtime pay would cover millions more workers under proposed Biden rule

The Biden administration unveiled a brand new rule Wednesday to increase time beyond regulation pay to an extra 3.6 million salaried white-collar staff in the USA.

Whereas most hourly staff are entitled to time beyond regulation pay, non-hourly skilled staff — govt, managerial, administrative {and professional} workers — are exempt from time beyond regulation pay until they make lower than $35,568 a 12 months.

The Labor Division’s proposed rule would assure time beyond regulation pay for much extra non-hourly staff, elevating the edge for skilled staff to profit these incomes lower than $55,000 a 12 months.

“Right this moment, the Biden-Harris administration is proposing a rule that might assist restore staff’ financial safety by giving hundreds of thousands extra salaried staff the best to time beyond regulation protections,” performing labor secretary Julie Su mentioned in an announcement.

The rule would increase wages for a lot of staff in low-wage however salaried occupations — together with in administration, hospitality, manufacturing and retail — making them eligible for time-and-a-half pay for working greater than 40 hours in per week. In one other main change, the rule would come with automated will increase to the wage degree for time beyond regulation eligibility each three years.

The proposed rule, which the Biden administration is touting as a part of its “Bidenomics” plan to rebuild the center class by empowering staff, resurrects an Obama-era coverage that was changed by a much less beneficiant Trump-era rule.

The rule now enters a 60-day remark interval earlier than it’s finalized. It’s possible face sturdy opposition from business and small enterprise teams.


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