Why it matters: The move extends protections for some four million salaried workers in the U.S. and marks an about 65% increase in the annual salary threshold for overtime pay from 2019 to 2025.
Zoom in: The salary threshold under which salaried employees can get overtime was set in 2019 at $35,568.
Starting July 1, it will increase to the equivalent of an annual salary of $43,888, and then in January 2025, it will go up to $58,656.
The salary thresholds will update every three years starting July 1, 2027, the Labor Department said.
What they're saying: "Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay," acting Labor Secretary Julie Su said in statement. "That is unacceptable."
She said the new rule "will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time."
