Millions more salaried US workers are set to be eligible for overtime pay starting July 1

The Biden administration has finalized a new rule set to make millions of more salaried workers eligible for overtime pay in the U.S.

The move marks the largest expansion in federal overtime eligibility seen in decades. Starting July 1, employers will be required pay overtime to salaried workers who make less than $43,888 a year in certain executive, administrative and professional roles, the Labor Department said Tuesday. That cap will then rise to $58,656 by the start of 2025.

“Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable,” acting Secretary of Labor Julie Su said in a prepared statement.

She added that the administration was “following through on our promise to raise the bar.”

Tuesday’s news marks a significant jump from the current overtime eligibility threshold of $35,568, which was set under the Trump administration in 2019 — just three years after a more generous Obama-era effort was ultimately scuttled in court after facing pushback from some business leaders and Republican politicians.