What happened?
- The Biden administration finalized a new rule increasing the overtime pay threshold for salaried workers.
- The new rule will raise the salary threshold for exempted salaried workers from federal overtime pay requirements to $43,888 starting July 2023, and then to $58,656 by January 2025.
- The rule is expected to benefit nearly 4 million lower-paid salaried workers and 292,900 higher-compensated workers.
- The new rule aligns with the methodology of the 2019 overtime rule update under the Trump administration.
- The rule aims to address the unfairness where lower-paid salaried workers often spend extra time away from their families without additional pay compared to hourly workers.
- The Labor Department plans to update the salary thresholds every three years from July 2027 based on up-to-date wage data.
What is conservative media saying:
- A similar rule under the Obama administration was struck down by a federal judge. [dailycaller.com]
- The DOL rule narrows distinctions for employees exempt from overtime protections. [dailycaller.com]
- Groups like HR Policy Association and the U.S. Chamber of Commerce opposed the DOL rule change. [dailycaller.com]
What is liberal media saying:
- The plan is described as a pro-worker initiative by President Biden, emphasizing the Democratic Party’s commitment to working people. [commondreams.org, cnn.com]
- The Labor Department’s new policy aims to protect retirement savings from conflicts of interest by providing honest and loyal advice free from overcharges. [commondreams.org]
- Business groups are considering a legal challenge and are concerned about the financial impact, citing increased costs and operational challenges, particularly for small businesses and the construction industry. [huffpost.com, cnn.com]
Sources:
