New Overtime Protections Go Into Effect For A Million Workers

President Joe Biden’s new overtime regulation took effect on Monday, making more U.S. workers eligible for extra pay when they work long hours. But it faces an uncertain future due to the looming presidential election as well as legal challenges from employer groups.

The rule raises the overtime “salary threshold” — the number below which a salaried worker is automatically entitled to time-and-a-half pay after working more than 40 hours a week. The Labor Department raised the threshold from $35,568 to $43,888 on July 1 and will hike it further to $58,656 next year.

The higher the threshold, the more workers are eligible for overtime pay. The White House estimates that a million additional workers will receive protections this week, and another 3 million will in 2025 when the threshold goes up again.

Julie Su, the acting labor secretary, said in a statement Monday that the reforms will prevent businesses from making employees work excessive hours with no additional pay to show for it — a huge problem in industries like retail, where store managers can work 70 hours a week and receive nothing but their base salary.

“The Biden-Harris administration is giving millions a chance to reclaim their time and share in the economic prosperity that they help create, and we will continue to do good by the people that make this country great,” Su said.

But the big changes might not last.

Businesses have filed at least three lawsuits challenging the legitimacy of the overtime rule. On Friday, a federal judge granted a narrow injunction request, blocking the regulation from taking effect for workers employed by the state of Texas.

But a judge in a different case could grant a more sweeping injunction as early as this week,