The federal government has recently announced the biggest expansion in overtime eligibility in decades.
This change in policy will result in an increased number of salaried employees being eligible for overtime pay.
The Biden administration aims to enable lower-paid workers to receive fairer compensation for their work hours.
Financial advisor Ted Jenkin predicts that thousands of Georgians will experience a new phenomenon: getting compensated for working overtime and sacrificing their lunch breaks or completing last-minute reports.
Jenkin shared that the recent increase in the federal overtime threshold is the largest one in decades. As a result, starting from July 1, individuals in Atlanta who earn less than approximately $44,000 will be eligible for overtime pay. Furthermore, beginning January 1, 2025, this threshold will further rise to slightly over $58,000.
According to the labor department, approximately 4 million salaried workers with lower pay and an additional 292,000 higher-compensated workers will be affected by this new rule.