Some employers may soon have to pad their white-collar workers’ checks with overtime pay. The White House Office of Management and Budget confirmed last week that the administration would review the U.S. Department of Labor’s proposed changes to the overtime rule under the Fair Labor Standards Act (FLSA). The suggested changes are expected to expand who’s eligible for overtime pay. 

The salary threshold for overtime pay is currently $35,568, equivalent to those who make $684 per week in wages. Many expect the Department of Labor to increase the eligibility salary limit. While the Biden administration has yet to hint at that new overtime threshold, some speculate it could be upward of $80,000.

In 2021, Democrats called on the Department of Labor to raise the salary threshold to “the 55th percentile of earnings of full-time, salaried U.S. workers,” approximately $82,732 by 2026, according to HR Dive. 

“With inflation being what it is, and so many states having minimum hourly wage rates that far exceed the FLSA rate, I think it is likely we will see some aggressive increases proposed by the Biden DOL,” Jim Coleman, an employment attorney with Constangy, Brooks, Smith & Prophete, told the Society for HR Management in March.

Some legal experts also predict the proposal may expand the FLSA’s duties test—the guide that helps employers distinguish exempt versus nonexempt employees for overtime eligibility. That could make it harder for companies to exempt employees from overtime pay without completely retooling the nature of their jobs. 

As employers wait for the Biden administration’s decision, they should prepare to raise salaries or dole out a lot more overtime pay to once-exempt employees.

Amber Burton
amber.burton@fortune.com
@amberbburton

Reporter's Notebook

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Are employees more ethical when they work from home? New research published in the European Financial Management journal suggests as much. 

“Bankers working from home, while brewing their morning coffees in pajamas, have been setting a higher ethical standard than their well-heeled office counterparts,” writes future-of-work consultant Gleb Tsipursky in a commentary for Fortune.

Around the Table

A round-up of the most important HR headlines, studies, podcasts, and long-reads.

- Employment drug tests that check specifically for marijuana use are disappearing as legalization spreads and applicant pools get smaller. Washington Post

- A court ruled that Uber must face a lawsuit alleging the company misclassified UberEats drivers as private contractors rather than employees and is thus responsible for their work-related expenses. Reuters

- New research from Oji Life Lab finds that one-third of employees experience heightened anxiety, lack of motivation, and sleep loss when working for a new manager. Bloomberg

- More workers hope employers will offer student loan benefits once federal loan repayment restarts this fall. Less than 20% of employers currently provide such assistance. CNBC

Watercooler

Everything you need to know from Fortune.

Remote attraction. New research finds that companies with fully remote options grew more than twice as fast as companies with strict in-person policies, regardless of company size. —Alicia Adamczyk

Faking it. Gen-Z workers are tricking themselves—and everyone else—into their dream careers. “Being delulu,” short for delusional, is the new way young workers say they are finding unexpected career success. —Rachel Shin

Motherhood tax. New research finds that even mothers who are breadwinners face the "motherhood penalty." Women lose more than 50% in earnings after having their first child, while fathers lose nothing. —Chloe Berger

McDonald’s apologizes. McDonald’s U.K. arm apologized to more than 100 employees who allege they were victims of harassment, racism, bullying, and sexual assault while working at the fast-food company —Eleanor Pringle