The new rule could cost employers around $1.2 billion in the first year if enacted, with annual costs of $664 million over 10 years.
The Biden administration has introduced a new proposal with the goal of expanding eligibility for overtime pay to an extra 3.6 million American workers.
This threshold represents an increase from the current limit of $684 per week, which ends up being $35,568 a year, set during the Donald Trump presidency in 2019. The proposed rule also introduces a novel aspect of updating the salary threshold every three years, and it is similar to a policy from the Obama era in 2016. Back then, there was a push to raise the annual overtime threshold to approximately $47,500, but that was ultimately derailed by legal challenges.
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