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President Biden’s Proposal For Daily Wage Worker For Overtime Pay

Joe Biden
Joe Biden; Source- CNBC

Millions of workers may be eligible for overtime pay under another plan from President Joe Biden if they put in a certain number of hours each week. Almost 3 million workers would be entitled to overtime compensation if they worked over forty hours per week under a new proposal from the US Department of Labor (DOL). By amending the exemptions under the Reasonable Labor Standards Act, the Biden Administration hopes to provide time-and-a-half pay protection to a broader proportion of workers.

President Biden's Proposal

President Biden’s Proposal; Source- CNET

President Joe Biden’s New Proposal For Workers

Companies would pay employees a total of 1.5 times their hourly rate if they volunteer more than 40 hours each week, per this new proposal. The new regulation will not apply to salaried managers or executives who make more than the set limit. Should it be passed, the pay component would increase to $55,000 annually. In other words, those who record these earnings and clock in more than the allotted hours will be eligible for automatic overtime pay. The latest change occurred a mere four years back, when the upper limit was $23,660, and the current amount is $35,568. The barrier will go up every three years after the project is approved.

Recommendations On The Proposal For Workers

The project is still in the proposal stage and has to be registered in the Federal Registry of the nation. When that occurs, the public will have 60 days to offer comments or recommendations with some revisions, so the law won’t go into effect for a while. The industries where employees regularly make the new salary threshold, such as hospitality, manufacturing, food, and retail, would be most affected by this proposed new legislation if it were to become law. After the plan is published, there will be a 60-day window for public response. Employers are required by U.S. wage legislation to pay qualifying employees who work over forty hours per week one and a half times their ordinary rate of compensation.

Who Is Eligible For President Biden’s Proposal

If a salaried employee does not do management-related tasks primarily yet earns more than the salary level, they may still be entitled to overtime pay. If a worker receives an income of more than $107,432, they are often excluded by default. The suggestion made on Wednesday would boost that threshold to nearly $144,000. The salary limits would also regularly rise each three years to account for variations in average earnings under the idea. In comparison to the present federal norm, certain states, notably California and New York, have wage criteria for establishing eligibility for overtime pay. The salary cutoff was doubled by the Labor Department in 2016 to around $47,000. The following year, however, a federal court judge in Texas opined that this ceiling was excessively high and might include some management employees who are immune from overtime pay provisions.

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