New rule means more money in the pockets of hard-working Americans

WASHINGTON, April 23, 2024 /PRNewswire/ -- WorkMoney and its members today praised the new U.S. Department of Labor (DOL) rule that extends overtime protection to about 4 million salaried workers. The rule increases the minimum annual salary threshold that determines overtime pay eligibility under the Fair Labor Standards Act from $35,568 to $43,888 effective July 1, 2024, and to $58,656 on January 1, 2025.

"This is a game-changer for hard-working Americans who not only want to work, but are also willing to work overtime," said Carrie Joy Grimes, founder and CEO of WorkMoney. "This will put thousands of additional dollars in the pockets of people who put in extra hours for their employers."

WorkMoney, a nonprofit organization with more than 6 million members in all 50 states, helping all Americans raise their incomes and lower their costs, has been one of the leading voices on the issue. WorkMoney members participated in listening sessions on overtime starting in the Spring of 2022 and submitted 7,000 text comments to the DOL to ensure the final rule would best reflect the needs of working people. WorkMoney submitted comments from those who would be directly affected by this decision, in addition to comments from retired workers who shared their story and desire to see a change for future generations, plus workers who would not immediately benefit but wanted to see their coworkers receive fair pay for their work.

WorkMoney members are scheduled to join leadership at the White House Tuesday afternoon to celebrate the new rule. Many members praised the rule despite their concerns about retaliation in their workplaces. The members below all submitted testimony in support of the rule change. Confirmation of their identities can be provided as needed:

"I shared my story with the Department of Labor when I advocated for this change because I believe in the principle of hard work. My husband and I were both Marine Corps veterans. Since he died in 2020, I've had to work harder than ever to survive. As a salaried support supervisor, I work an average of 45-48 hours every week, even though I'm only paid for 40 hours. I am constantly overwhelmed with the thought of how I would pay my bills. Now that I'll be fairly compensated for my time, I can finally relax a little and not be so stressed about how I would afford utilities, rent, car payments, and food."

• Y. Hernandez, a veteran and widow in Arizona, earning $50,000 a year

"I just got a promotion and raise at my job in a local grocery store that puts me over the threshold. But that's OK, because I will benefit from the provision in the rule change that grants an automatic increase to the threshold every three years. That's basically a guaranteed pay raise that will substantially help me, my family and so many other hard-working Americans down the road. It is important that this not be a one-time benefit that lags behind cost increases in the years to come."

• George, a married father of two in western Pennsylvania earning $60,677 per year

"Today's overtime ruling from the U.S. Department of Labor will finally give me what I am due. As someone who works up to 45 hours per week at times, I gladly help to provide social services to children and families who need it across a southeastern Pennsylvania school district. Thanks to the DOL raising the overtime threshold, being paid for those extra tireless hours will be a tremendous boost to my finances, and allow me to better support my family and save for my children's future. This will change my life, and it will change the lives of millions of other hard-working Americans."

• Dalila, a mother in southeastern Pennsylvania, currently earning $49,000 per year

"Like many Americans, I live paycheck-to-paycheck, so seeing an increase in the federal overtime threshold makes a difference. I work an average of 50 hours a week in the insurance industry and make more than the amount in the new rule change, so it won't affect me. But I understand how it will help others make ends meet in paying for necessities, like food and gas, and maybe even save a little. This increase is long overdue and I can only hope that there is more to come to benefit those of us who are hard-working taxpayers and voters."

• Yvonne, a married mother of two in northeast Ohio, currently earning $69,000 per year

"As someone who works between 45-50 hours on a weekly basis at a public university in North Carolina, I am excited to get paid for all the hours that I am working so that I can take better care of myself and my family. I truly enjoy working with students and helping to guide them, but working all those extra hours has added to stress and strain on my family. I am relieved that I will get paid for my hard work while also allowing me to manage the higher cost of living and everyday expenses."

• Shenna, a single mother living in North Carolina, currently earning $43,000 per year

"I'm thrilled to see this change. For more than 20 years, I've worked as a school secretary. My job is incredibly demanding, and most weeks I have to work more than 40 hours a week to simply get my job done; yet I've never been eligible for overtime pay. To know that my time will now be compensated gives me peace of mind. With the overtime pay I make, I won't have to decide between keeping up with the bills, paying the mortgage, or putting food on the table. I might even be able to save some money for my grandchildren's future. This change is a win for us everyday working Americans and for the economy."

• Lynn, a grandmother and secretary living in southeastern Pennsylvania

About WorkMoney
WorkMoney is a national nonprofit organization dedicated to lowering costs and raising incomes for all Americans, making American life more affordable and American families economically secure. We provide information, products, services, perks, benefits, tips, and tools to help our more than 6 million members improve their financial lives. For more information visit: www.WorkMoney.org

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