More salaried workers to qualify for overtime pay starting July 1

(CNN)– The Biden Administration announced a new rule on Tuesday that will make millions more salaried workers eligible for overtime pay.

The rule raises the salary threshold required to exempt salaried employees from overtime pay requirements.

Starting July 1, the threshold will increase to the equivalent of an annual salary of just 44 thousand dollars.

Then on January 1, the threshold increases again to a salary of more than 58 thousand dollars.

The Department of Labor estimates that about four million more workers will qualify for overtime when the rules are fully implemented in January.