The Biden administration on Tuesday announced a new rule that would make millions of white-collar workers newly eligible for overtime pay.
Starting July 1, the rule would increase the threshold at which executive, administrative and professional employees are exempt from overtime pay to $43,888 from the current $35,568. That change would make an additional 1 million workers eligible to receive time-and-a-half wages for each hour they put in beyond a 40-hour week.
On January 1, the threshold would rise further to $58,656, covering another 3 million workers.
“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid for that time,” Acting Labor Secretary Julie Su said in a statement. “So 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. This is unacceptable.”
In California, a fast food minimum wage is at $20 an hr. This 43k is just a dollar or 2 above that wage.
I guess it’s good for people in other areas, but you would have thought there would be some regional adjustment on federal rules that go out.
I mean even without regional adjustment it goes up Jan1 and every 3y thereafter.
My point being that your standard for overtime payment being at McDonald’s minimum wage seems wrong.
It would make sense since that regional adjustment system already exists that they could apply it to everything. I’m sure there are some macro economics that would affect but I’m too lazy to put that much thought into it.