New overtime protections for 1 million workers. Thanks, Biden.
July 7, 2024 1:53 PM   Subscribe

On July 1, the Biden administration's new rule extending overtime rules went into effect. President Biden said, "While Republicans side with big corporations and special interests on Park Avenue to try to deny workers these protections, I will always side with hardworking families like the ones I grew up with in Scranton." Another 3 million will get protection next year.

Most of the news stories date back to April, when the rule was initially announced:

New Biden rule would make 4 million white-collar workers eligible for overtime pay, USA Today, Paul Davidson
Millions more salaried workers will be eligible for overtime pay under final Biden administration rule, CNN, Tami Luhby
Millions more salaried US workers are set to be eligible for overtime pay starting July 1, AP - Business, Wyatte Grantham-Philips
Millions of salaried workers to become eligible for overtime under new Biden rule, Tennessee Lookout, Ariana Figueroa

From the AP story:
The move marks the largest expansion in federal overtime eligibility seen in decades. Starting July 1, employers will be required to pay overtime to salaried workers who make less than $43,888 a year in certain executive, administrative and professional roles, the Labor Department said Tuesday. That cap will then rise to $58,656 by the start of 2025.
Starting July 1, 2027, the rule requires Labor to adjust the salary threshold every three years to account for updated wage data.

Acting Labor Secretary Julie Su: “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.”
posted by kristi (25 comments total) 26 users marked this as a favorite
 
I neglected to link to the Reuters article -

Biden rule grants overtime pay to 4 million US workers, Reuters, Daniel Wiessner

which explains a bit about how these thresholds came about, as does the USA Today article - from USA Today:
In 2016, the Obama administration proposed doubling the overtime salary threshold to $47,476 from $23,660 but a federal judge in Texas struck down the increase as excessive.

...

In a statement, the Labor Department said it's confident the new standard can better withstand a legal challenge because it's notably lower than than the 40th percentile benchmark set by the Obama administration.
Biden and his team seem to be very aware of likely court challenges and take great care to craft their actions with an eye toward withstanding those challenges.
posted by kristi at 2:14 PM on July 7 [6 favorites]


Does not apply to Texas state employees, thanks to a ruling by a federal judge in Texas.

Link to a clear explanation, NB it is written by an employer-side law firm.
posted by cushie at 2:33 PM on July 7


I'm sure the Corner Post ruling will also gut this :/
posted by ChrisR at 2:37 PM on July 7 [2 favorites]


This is good. Salaried workers getting screwed into doing unpaid overtime has gone on way too long.
posted by The Manwich Horror at 2:48 PM on July 7 [6 favorites]


Fuck yeah. Pack these fucking Bosses' courts

Look at Jeff Landry, fascist Governor in Louisiana. He makes money on migrant labor for oil and gas construction. All this bullshit, they just want slavery to come back.

Pack the courts
posted by eustatic at 3:01 PM on July 7 [6 favorites]


Lol my company responded to this by switching me from salaried to hourly. So they can now just not pay me if I run out of the abysmal amount of sick leave they provide! And I now have to be here from 8 to 4:30 and take an unpaid lunch, instead of working through lunch and leaving at 4. Yayyyy

The e-mail they sent also made four of eight people on my team think we were getting a raise to match the current minimum to be a non-exempt employee, but no. It was just letting us know we are currently paid the previous absolute minimum required to still count as a salaried worker and they aren’t going to increase it to keep up.

So, broadly a good thing but man do I have some sour grapes about it at this precise moment in time. I’m sure I’ll feel better once I get paid for some overtime though.
posted by brook horse at 4:03 PM on July 7 [17 favorites]


Due to the Supreme Court’s Week of Terror™, you can rest assured that anything like this will be subject to a lawsuit from a multi-trillion $ corp, and that the rule will be dismantled and found “unconstitutional.”

No one realizes yet how much the corporations won recently with the 6 radical, right-wing extremists at the top of the Judicial branch.

Corporations are not subject to any meaningful regulation going forward, if they can afford the lawyers.
posted by teece303 at 6:28 PM on July 7 [15 favorites]


Throw us the red meat, Biden! This is what we want! Throw it, baby!
posted by latkes at 8:00 PM on July 7 [6 favorites]


Mod note: A couple deleted. You can talk about how he's old over here; we don't need three different threads for that.
posted by taz (staff) at 10:22 PM on July 7 [10 favorites]


The over time rule for those paid a salary - is a good thing? They make more than a minimum wage worker is why they are salary, make 6 digit numbers. I worked for a Corporation that paid me salary with paid lunch & overtime in the 1990s; Yes, There are some good Corporations. But, this post is about the wealth to become more wealthy a good thing? The poor whom need Our help first, not the rich whom have more than they need . Why are you drinking the "kool aid?""
posted by thomcatspike at 12:45 AM on July 8


Great news for the American worker. Thanks, Julie Su!
posted by daveliepmann at 12:49 AM on July 8 [1 favorite]


Ps... actually a good post, I apologize to You as You did nothing wrong here. Unfortunately for all that are salary and paid mandatory overtime by law...there goes the perks of the job. Perks = not having to clock in & out,, free coffee, being late to drop your child off at daycare, going to the Doctor & waiting another 2 hours after your appointment time to see & ect. Yes, You shared how all salaried paid will be like the poor.
posted by thomcatspike at 1:07 AM on July 8 [1 favorite]


They make more than a minimum wage worker is why they are salary, make 6 digit numbers… But, this post is about the wealth to become more wealthy a good thing? The poor whom need Our help first, not the rich whom have more than they need . Why are you drinking the "kool aid?"”

Did you just not read the fucking post as all? You don’t even need to read the full article, it’s right there in the post:the minimum salary for unpaid overtime is now 43,888. Last I checked that is only 5 figures. This affects the rich by making them pay their employees more.
posted by LizBoBiz at 3:39 AM on July 8 [24 favorites]


Great news to go along with the FTC outlawing most non-compete agreements, which will help workers all up and down the pay scale. You may have read that a federal judge in Texas blocked the FTC's rule but happily said judge showed restraint and only applied the TRO to the Dallas-based accounting firm that is the lead plaintiff. Given how associational standing has been so heavily abused of late, this is a pleasing development overall.
posted by wierdo at 3:57 AM on July 8 [3 favorites]


So many full time faculty at those "not elite" colleges and universities attended by most US students make under that $58k threshold--especially people like freshman comp instructors with an MFA. And most work way more than 40 hours per week. I'm really interested to see how this plays out in higher ed.
posted by hydropsyche at 4:06 AM on July 8 [6 favorites]


Never mind, it turns out there is a teaching exemption in the federal labor law. (Can't just pay people fairly for teaching. That wouldn't be fair.) However, lots of the staff who actually work with students daily like advisors, admissions counselors, and coaches would benefit.
posted by hydropsyche at 4:10 AM on July 8 [10 favorites]


I don't think this will apply to me and my team, which is sad, not so much because of the overtime itself (although that would have been nice!), but because it would be such a culture change from the whole, "oh I never stop checking my mail, even in the dead of night," "they call it PRETEND time off HA HA HA" nonsense we have now. But good for everyone it does apply to! Make companies stop abusing the concept of a salary!!!
posted by mittens at 5:04 AM on July 8 [1 favorite]


$43,888 is just barely middle class income - in a lot of places it's not even that. It will be big news to a lot of people still living paycheck to paycheck that they are apparently The Rich now. Also big news to me that most of the teachers that I've been told for years are grossly underpaid are also apparently part of The Rich!

Perks = not having to clock in & out,, free coffee, being late to drop your child off at daycare, going to the Doctor & waiting another 2 hours after your appointment time to see & ect.
Aside from the absolutely laughable idea that ~$44k a year is Rich (a lot of people making $43,888 still can't afford children, much less daycare in the areas where they live) - a lot of companies still require you to use sick time for appointments because their salary rules are only set up to benefit them.

Just because someone is getting screwed over slightly less than someone else doesn't mean they're not also getting screwed over.
posted by Saucy Possum at 8:19 AM on July 8 [5 favorites]


If you consider "free coffee" to be some amazing bonus for the salaried elite, you should examine how much pro-business propaganda you've swallowed. Free coffee should be up there with free water and free toilet paper. Hell, it's in the bosses interest for you to be caffeinated.
posted by The corpse in the library at 1:25 PM on July 8 [5 favorites]


a lot of companies still require you to use sick time for appointments because their salary rules are only set up to benefit them

Yeah, my company forces us to use a whole half day of PTO for a doctor's appointment. There's no leaving the office for two hours or taking off early.

I've never had a paid lunch at any salaried job. It's always been 8-5 with an unpaid hour lunch. There's no leaving early either, that is frowned upon. You have to work late if needed, though.

Anyway, I hope this benefits people in some way. I'm sure some shady employers will find a way to abuse it, but hopefully it will help some people.
posted by Fleebnork at 4:57 AM on July 10 [1 favorite]


Not to be the Debbie Downer, but how is this different from the rule that came out in 2016 that I posted about? Overtime Eligibility?

I WANT it to be substantially different! But the previous ruling was blocked by the courts and quite frankly I need some reassurance that isn't just going to happen here again...
posted by sharp pointy objects at 8:32 AM on July 10




Unfortunately for all that are salary and paid mandatory overtime by law...there goes the perks of the job.

I've been considering this for a couple days now and I don't really have a coherent thesis so this is more stream of consciousness than targeted rebuttal.

1) if the perks go away that means they were worth less than the uncompensated labour. I mean if they were only worth half as much as they would have only cut half the perks right?

2) all those perks can still exist and only ever existed as a way of attracting and keeping workers. No company of any size does things just to be nice.

3) the free coffee thing is hilarious because the only places I've ever worked without that rarified perk were government where heaven forbid people get any sort of compensation from the government that wasn't negotiated.

4) why the hell is there even a cutoff? That just means companies with employees at the threshold can save money and screw their employees by giving them a modest raise with mandatory overtime. I'm used to "they don't deserve it" aimed at the poor; it's weird to see aimed at the sort of getting along all right, maybe (from brook horse's link its 35th percentile of earnings in the lowest wage region in the US, which is currently the South. Not exactly living high on the hog). I realise that is how so many things are done in the US, heaven forbid anyone get anything they don't deserve by what ever feels, but frack me.
posted by Mitheral at 2:51 PM on July 10


I only had a conversation, here. To be clear; All should be paid equally,. Unfortunately, there are those Ones whom deserve more. But, a law is not their friend is all,. They do more and 5 digit does not add to 6 digits.. I hope, your math adds up...how do you talk to Ones older -- You are wrong, I never had a free cup of coffee...
posted by thomcatspike at 12:04 AM on July 11


I only had a conversation, here.. To be clear All should be paid equally,. Unfortunately, there are those Ones whom deserve more.. But a law is not their friend is all,. They do more and 5 digit does not add to 6 digits.. I hope, your math adds up...how do you talk to Ones older... You are wrong, I never had!?!
posted by thomcatspike at 12:21 AM on July 11 [1 favorite]


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