(TheRedWire.com) – On Tuesday, the Biden administration announced a new rule that would help ensure that those on annual salaries of up to around $59,000 would be fairly compensated when working overtime.
The Labor Department has stated that this rule would put up the threshold salary requirements for an exemption of salaried workers from federal overtime pay requirements. Starting in July the office announced that the new threshold round exempts salaried workers from the federal overtime pay requirements. The rule will be implemented in July and the office has noted that the increase is for close to $15,000 as previously the threshold had been at $43,888 and under the new rules would climb to $58,656 in January 2015.
The office pointed out that the July 1 updates are going to be increasing the thresholds under the same methodology that had been followed in 2019 by the Trump administration to make a rule update regarding overtime.
In a statement, Julie Su, the Acting Labor Secretary put out a statement noting that the new rule would help restore to workers the promise that if they work for over 40 hours in a week they would be compensated for that work.
She continued by pointing out that oftentimes there are lower-paid salaried workers who find themselves being compensated worse than those workers who were being compensated hourly. She pointed out that in these cases these people were being compensated worse while also not receiving any additional pay which is “unacceptable.” Hence the new rule would protect those workers.
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