The Department of Labor (DOL) has proposed significant changes to overtime pay regulations that could affect millions of American workers.

The proposed rule seeks to increase the exempt salary threshold, which determines who is eligible for overtime pay. Under the new rule, workers would need to earn at least around $55,000 annually to be considered exempt from overtime pay, a substantial increase from the current threshold of about $35,000.

Additionally, the DOL’s proposal includes measures to automatically update the salary threshold every three years, ensuring that it keeps pace with economic changes.

These changes are aimed at expanding overtime protections to more workers, with projections suggesting that approximately 3.6 million employees could be impacted.

While the specifics of the rule are still under review by the White House budget office, it is expected to be finalized soon, potentially by April. Once approved, the rule could take effect as early as June 2024.

Employers are advised to stay informed about these developments and prepare accordingly. For workers, especially those earning salaries close to the proposed threshold, these changes could mean a significant increase in their earnings through overtime pay.