The Biden rule proposes to increase the salary threshold for overtime eligibility to $43,888 per year, or $844 per week, effective July 1, 2024. This threshold will further increase to $58,656 per year, or $1,128 per week, on January 1, 2025.
The current overtime pay salary threshold, as of July 1, 2024, is $844 per week, which is equivalent to an annual salary of $43,888. This threshold is set to increase again on January 1, 2025, to $1,128 per week, or an annual salary of $58,656.
Under federal overtime law, exemptions exist for certain executive, administrative, and professional (EAP) employees. To qualify for these exemptions, employees must meet specific salary and duties tests, including a minimum salary requirement and primarily performing executive, administrative, or professional duties.