Millions of salaried workers in the United States are set to benefit from a significant increase in overtime pay, thanks to a new rule released by the U.S. Department of Labor. The rule, finalized under the Biden administration, raises the salary threshold for overtime eligibility, ensuring fair compensation for employees.

Starting July 1, the threshold will rise to $43,888 annually or $844 weekly, with a further increase to $58,656 annually or $1,128 weekly effective January 1, 2025. This adjustment is expected to extend overtime pay to approximately 4 million more workers when fully implemented.

The move aims to uphold the principle that working more than 40 hours per week deserves additional compensation. Acting Labor Secretary Julie Su emphasized the importance of addressing disparities where lower-paid salaried workers often put in extra hours without extra pay.

Previously set at $35,568 annually or $684 weekly under the Trump administration, the new threshold seeks to provide better protection for workers’ rights. Additionally, the rule includes provisions for regular updates to the salary threshold every three years, starting from July 1, 2027.

While the initiative has garnered support from labor advocates, business groups have expressed concerns about potential impacts on operating costs. Past attempts to significantly raise the threshold faced opposition, with legal challenges and economic apprehensions from various sectors.

This latest development reflects ongoing efforts to balance the needs of workers and employers, ensuring a fair and equitable labor landscape in the United States.