Overtime Pay Proposal By Biden Administration Could Raise Salary To $55,000 For 3.6 Million Workers

The U.S. Department of Labor introduced the overtime pay proposal that could raise the salary threshold for 3.6 million employees. Reportedly, the income ceiling would increase from $35,568 to around $55,068.

The Department of Labor under the administration of U.S. President Joe Biden introduced the overtime pay proposal that intends to raise the salary threshold of almost 3.6 million employees in the country. Reports say the employees would be eligible for the increase in the income ceiling from $35,568 to $55,068.

According to Wiessner, the idea of the overtime pay proposal was first suggested during the administration of former U.S. President Barrack Obama in 2016. Unfortunately, the overtime pay proposal was overturned in federal court the following year after more than 20 U.S. states and business groups took legal action against the administration for overreach of authority.

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Opposition to Overtime Pay Proposal

However, according to Jacques, President of R Street Institute Eli Lehrer states that the overtime pay proposal is the last thing the economy of the U.S. needs to date. This is because Lehrer believes that the overtime pay proposal is amidst a time when several employers are still shaken by the shutdowns enforced by the government and other effects of the COVID-19 pandemic. Furthermore, Lehrer also believes that the opinion of employers in manufacturing, retail, hospitality, and other sectors for the overtime pay proposal must also be taken into consideration.

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