Millions of workers will be eligible for overtime pay under a new Department of Labor rule that took effect Monday.

The majority of salaried workers who earn less than $844 weekly can now be compensated for working more than 40 hours per week.

“A hard day’s work should lead to a fair day’s pay,” President Joe Biden said in a statement Monday.

Effective July 1, the overtime protections extend to 1 million workers who make less than $43,888 a year. The previous threshold was a weekly salary of $684 or less or an annual salary of $35,568.

Starting next year, the protections will extend to 3 million workers when the overtime threshold increases to $58,656 annually, or $1,128 per week.

“That means higher paychecks and more time with family for millions of Americans,” the president said.

In April, the U.S. Department of Labor finalized a rule about minimum wage and overtime pay requirements for executive, administration and professional employees. The rule increases standard salary levels and total annual compensation levels for highly compensated employees.

Under the new rule, the total yearly compensation for highly compensated employees who are exempt from overtime pay also increases from $107,432 to $132,964. Next January, it increases again to $151,164 annually.

Starting January 1, 2025, the department will use a different methodology to calculate the salary and compensation levels, which will be updated every three years to incorporate up-to-date earnings information.