New overtime rule from U.S. Dept of Labor about to massively increase wages for new grads

Yesterday, the big news in the U.S. labor market was the prohibition of non-competes. Today, the news is even more substantial: four million (!) workers are going to see massive increases to their earnings if their employers continue to require them to work overtime.

A new U.S. Department of Labor rule lifts the salary ceiling for those who qualify for overtime from the $35,500 set in 2020 to $58,656 effective next year. Under the rule, employers must pay an overtime premium to those whose earnings are under the ceiling and who work more than 40 hours a week.

This will have a massive impact on employers of college and university new graduates, as only the highest paid make more than $58,656.