Biden Overtime Rule Raises Pay Cap, May Hurt Small Biz

The Biden administration made a new rule that changes how much money workers get for working overtime. This rule says that people who make up to $43,888 a year must be paid more if they work more than 40 hours a week. This is higher than the old rule from when Obama was president. At that time, a judge said the salary threshold was too high.

Conservative opinion: It’s important for workers to be paid fairly, but the government telling businesses how much they must pay their employees can hurt small businesses. When businesses have to pay more money for labor, they might have to hire fewer people or raise prices, hurting the economy.


The Biden administration plans to raise the threshold again in 2025 to $58,656. This rule will be updated every three years. The Department of Labor also changed who is considered a manager and exempt from overtime pay.

Conservative opinion: The government should not interfere too much in how businesses operate. When the government imposes strict rules on pay and employment, businesses might struggle to survive, harming the whole economy and making it harder for people to find jobs.

The new rule will affect about 4 million workers. Some states already pay more for overtime. The Department of Labor says they want to make sure workers and businesses understand the rule so that people are paid fairly.

Conservative opinion: People should be paid fairly for their work, but the government should not make it harder for businesses to operate. Businesses create jobs and contribute to the economy, and excessive government regulations can hurt them. It’s important to find a balance between protecting workers and allowing businesses to thrive.

Written by Staff Reports

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