4.3 million workers will start getting paid overtime: Who qualifies for the new employment law?

Around 4.3 million workers will be able to start getting paid for overtime hours worked, thanks to a new standard approved by the U.S. Department of Labor.

Under the Fair Labor Standards Act, employees who work more than 40 hours a week can receive 1.5 times their regular wage for each extra hour worked. Although the law covers most workers, salaried employees only qualify for overtime pay if they earn less than a certain threshold, meaning workers who exceed that limit may be forced to work overtime without the employer needing to pay for the extra hours.

“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,” according to Acting Secretary of Labor Julie Su.

READ ALSO: How much do Walmart employees get paid?

READ ALSO: 9 jobs that surprisingly pay well

Who qualifies for the new overtime payment rule?

Since the guidelines on overtime are currently conditional on salary, the rule covers workers who earn $684 per week or the equivalent of $35,568 per year. However, with the modification made by the Labor Department, the threshold will be raised to $844 a week or $43,888 a year. This measure will come into effect as of July 1.

By early next year, the threshold will rise again, making more workers eligible to claim overtime. As of January 1, 2025, the cap will rise to $1,128 per week and $58,658 per year. It will be automatically updated every three years so that more workers are qualified to receive extra pay.

The new rule is expected to benefit around 4.3 million salaried employees, of which, according to the Economic Policy Institute, 2.4 million are women, while one million are people of color. The majority of workers are located in the professional, commercial and social services sector.