If you make less than $55,000, the Labor Department wants you to start getting overtime pay

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  • The Department of Labor proposed a new rule that would update who's eligible for overtime.
  • Currently, workers making under about $36,000 can get extra pay for extra hours.
  • Under the new proposal, that threshold would rise to $55,000, benefiting millions of workers.
The Biden administration's labor department wants to make sure you get paid for extra hours you're working — even if you're in a salaried position.

Under the Department of Labor's new proposed rule, salaried workers who make less than $55,000 a year, or $1,059 a week, will become eligible for overtime. Currently, that threshold stands at $35,568 a year, or $684 a week, a Trump-era adjustment from $455 a week. The DOL estimates that the rule will make 3.6 million salaried workers eligible for overtime protections. The threshold would also get automatically updated every three years based on workers' earnings.

"The current salary threshold beneath which all workers are entitled to overtime is pitifully low," Judy Conti, government affairs director at the National Employment Law Project, told Insider. There are complex tests that employers have to use to determine if an employee earning above $35,568 should be eligible for overtime, Conti said, such as whether they're performing work that requires advanced knowledge or imagination. One study found that some firms give out fake manager titles to try and avoid paying their workers overtime.

hat means that the salary threshold is "the clearest, easiest way for both workers and employers to determine who should be paid overtime and who should not," according to Conti — making it particularly significant that the DOL is stepping in to raise it.



"For over 80 years, a cornerstone of workers' rights in this country is the right to a 40-hour workweek, the promise that you get to go home after 40 hours or you get higher pay for each extra hour that you spend laboring away from your loved ones," Acting Labor Secretary Julie Su said in a statement. "I've heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don't come anywhere close to compensating them for their sacrifices."

Currently, full-time workers earn median weekly wages of $1,100, according to the Bureau of Labor Statistics. That means a sizable chunk would be eligible for overtime pay under the new $1,059 weekly threshold. Higher thresholds might also benefit historically disadvantaged populations: Women earn a median $993 a week, and median Black and Hispanic workers both earn below the new $1,059 proposed threshold.

It's not the first time that a Democratic administration has targeted the overtime threshold. President Barack Obama attempted to raise the cut-off in 2016, aiming for $47,476, but that was ultimately blocked by a federal judge over states' concerns that the new threshold would increase their costs. The DOL's latest proposal is not a done deal yet; a comment period will be open for 60 days, with hopes that the rule will be finalized by April 2024, according to Conti.

For workers under that new threshold, a final implementation will mean one of two things, Conti said.

"If their employers want to keep working them more hours than 40, they're going to get more money," Conti said. "Or, if their employers don't want to pay them more money, then these workers are only going to work 40 hours a week — and they're going to get their lives back."



 

Which country gets the most paid vacation days?

Resume.io analysed the laws covering annual statutory paid leave and paid public holidays in 197 countries across the globe to reveal where in the world employees are entitled to the most time off whilst still being paid.
After years of social progress and improvements to work-life balance, conflicting pressures are fragmenting the work world’s approach to paid leave.

Employers struggling to attract talent are paying workers more, leaving firms understaffed but with a steep payroll to meet and a reluctance to give time off. In 2022, only 35% of U.S. organizations offer paid maternity leave – a shocking drop from 53% just two years ago, according to a survey from the Society for Human Resource Management (SHRM). For paid paternity leave, the drop is from 44% to 27% in the same period.

Meanwhile, workers continue to suffer the health and mental health fallout of the pandemic. COVID-19 prompted a 25% rise in anxiety and depression globally. Today, the workforce is adjusting to post-lockdown conditions – whether returning to the workplace, adapting to a permanent WFH or hybrid situation, or rethinking things entirely in light of lay-offs, organizational changes, and the volatile economic landscape.

And governments are stepping in to maintain a balance. Around the world, some are mandating paid leave for the sick and even for victims of domestic violence, while others resist pressure to add annual bank holidays to the calendar.

In these fluctuating conditions, it makes sense to know your rights and manage your time with care. So, Resume.io has found out how much paid annual leave and how many public holidays are available in every country around the world – and how paid vacation days compare in total from one place to another.

What We Did​

Resume.io reviewed the annual statutory paid leave and paid public holidays laws in 197 countries, referring to government websites, the OECD, the International Labour Organization, etc. We then ranked the countries based on the combined number of statutory paid leave days and paid public holidays per year.

Paid leave refers to the statutory minimum annual time off bookable by the individual. Vacation days refers to the combined total of paid leave days and paid public holidays.

Key Findings​

  • Iran has the most public holidays (27) in the world and the most paid vacation days overall (53).
  • We found 23 countries with 30 days of paid leave per year, the highest number of paid leave available.
  • The United States is the country with the joint fewest days of paid leave (0) and the second lowest number of paid vacation days in the world (10).

The U.S. is the Second-Worst Country for Paid Vacation Days, the Worst is Micronesia​

African and Middle Eastern countries dominate the top of the table. Iran has the most statutory annual vacation days in the world (53), with a clear week’s worth more than second-placed San Marino (46). As well as a reasonable 26 days of paid leave, Iran has nearly a month of public holidays (27 days), which is more than any other country. Religious holidays and days to mark events concerning the Islamic Revolution contribute to this total.
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Panama, in joint 17th place, is the only North American country in the top 100. Although Panama has a relatively low public holiday count of 11 days, a joint top annual leave count of 30 days ensures Panamanians are assured at least 41 days off each year. Additionally, workers are guaranteed a ‘rest day’ of at least 24 consecutive hours each week – earning 150% of their regular rate and a bonus day off if required to work it.

The U.S. Has the World’s Least Paid Leave (Hint: It’s Zero)​

Four weeks' leave has become something of a norm around much of the world – though some count it in working days (i.e., 20 days) and some in full weeks or a month (28-30 days). We identified 22 countries with a 30-day leave plan, of which 10 are in Africa. The average by country is 18.2 days of paid leave per year.

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The U.S. is bottom of the table for paid leave, with the simple figure of zero days. It is the only developed country with no statutory paid leave, and only the Pacific island countries of Nauru, Micronesia, and Kiribati have the same. In the U.S., paid leave is at the discretion of the employer. The average employee gets 14 days after their first year with a company, but 15% of civilian workers get no paid leave at all, according to the Organization for Economic Cooperation and Development (OECD).

San Marino is Europe’s Capital of Public Holidays​

The U.S. does at least have 10 “legal public holidays,” although it is not obligatory for private employers to honor them with days off (except in lucky Massachusetts and Rhode Island). However, state and federal organizations and some private firms do award these days as leave. The majority of private employers give paid time off for New Year’s Day, Memorial Day (the last Monday in May), Independence Day, Labor Day (the first Monday in September), Thanksgiving (the fourth Thursday in November), and Christmas Day. Juneteenth and the birthdays of Martin Luther King, Jr. and George Washington are more of a lottery.

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The average number of paid public holidays from country to country is 11.8, but we found six places with upwards of 20, mainly in Asia. The exception is San Marino, whose 20 public holidays make it the most generous in Europe by a significant margin. Catholicism remains prominent in the little republic, and annual celebrations include several Christian commemorations as well as days marking San Marino’s hard-won victories and freedoms.

Work-Life Balance Around the Calendar​

Employers can be assured that shorter hours tend to lead to higher output, not least because depression costs the global economy around 12 billion workdays annually. As an employee, one of the easiest steps you can take to protect your work-life balance and mental health is to know your rights – and take the annual leave that you’re due. You can find the amount of paid leave and public holidays in your country by browsing our data in this table.

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From Andorra to Zimbabwe, the amount of paid vacation days each country gets varies throughout the world. If you’re keen to know whether workers in Madagascar receive more time off than those in Mauritius, use our interactive HTML filter below to find out. It’ll give you the heads-up on all vacation-related data, and you can see how your country ranks compared to the rest of the world.


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