Labor Department expands overtime coverage to more employees

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The Trump administration boosted the number of workers eligible for overtime, extending pay requirements for about 1.3 million people.

The rule, set to go into effect Jan. 1, would increase a key salary threshold below which workers generally qualify for time-and-a-half pay for logging more than 40 hours a week, The Wall Street Journal reports. That threshold would increase to $35,568 from $23,660—a figure that hasn’t changed since 2004. A more-sweeping version of this rule made by the Obama administration in 2016 was blocked by a court after states and businesses challenged it.

Today’s change comes as several states weigh overtime measures of their own, outpacing federal requirements. Some high-cost areas already have standards that exceed Tuesday’s new federal threshold. In California, for instance, workers at large employers earning less than $49,920 are paid overtime now; in 2023, workers earning less than $62,400 will be eligible.

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The Labor Department estimated 1.2 million workers will become eligible for overtime under the new rule. An additional 100,000 will see their incomes rise under changes for a smaller category of workers—supervisors or company managers—who also are covered by overtime rules. It won’t be adjusted automatically after a set period. Read the full story.

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