Staff Reports
The Biden administration has announced a new rule to make more salaried workers eligible for overtime pay. Starting on July 1, 2024, the salary threshold for certain employees exempt from overtime pay will increase to $43,888, and by January 1, 2025, it will rise to $58,656.
Acting Labor Secretary Julie Su explained that this rule is meant to ensure that workers are fairly compensated for their hard work, especially those who have been putting in long hours without receiving extra pay. Su emphasized the administration’s commitment to improving conditions for workers and supporting economic prosperity.
A hard day’s work deserves a fair day’s pay. Our new rule will benefit millions of workers, including many who have been working 40+ hours/week without any extra pay, by ensuring they gain overtime protections or a raise in salary or compensation level. https://t.co/ZtFKvh9APd pic.twitter.com/tG5pGh8R5G
— U.S. Department of Labor (@USDOL) April 23, 2024
However, CEO of Job Creators Network, Alfredo Ortiz, criticized the new rule, arguing that it will negatively impact small businesses already facing challenges due to government regulations, inflation, and high credit costs. He expressed concern that employees striving for career advancement may be demoted to hourly positions in order to avoid overtime costs.
Additionally, the National Federation of Independent Business expressed similar concerns, highlighting the complexity of implementing the rule and the potential burden it may place on small business owners.
This move by the Biden administration has drawn criticism from conservative voices, who argue that it will harm small businesses and working individuals.
