The Biden administration has introduced a new overtime pay rule aimed at extending eligibility to 3.6 million more U.S. workers, marking one of the most substantial increases in decades. This rule, a revival of an Obama-era initiative, proposes that salaried workers in executive, administrative, and professional roles earning less than $1,059 a week, or $55,068 annually for full-time positions, be entitled to overtime pay. The previous threshold was set at $35,568 in 2019 by the Trump administration, a comparatively modest increase from the $23,660 level set by President Barack Obama. This rule change, currently in the public commentary phase, could have a profound impact on industries like retail, food, hospitality, and manufacturing, where many managerial employees will now meet the new threshold.
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