Catherwood LibraryILR School

A recent ruling from the United States Department of Labor determined that millions of workers will now be able to qualify for overtime pay. The current maximum threshold for workers to qualify for overtime pay is a $35,568 salary per year, and under the ruling, workers who earn up to $43,888 per year will be able to earn overtime pay. The change will be implemented in July. Starting in 2025, the maximum threshold for workers will be $58,656 per year. The changes will allow more than four million workers to qualify for overtime pay, which means that there will be a significant increase in total wages paid in the United States. Companies will either have to pay a greater number of workers overtime, or they can raise employee wages above the maximum threshold so they will not be required to pay those employees overtime. These changes could lead to businesses cutting jobs or increasing prices for consumers.