The Labor Department announced Tuesday that it had finalized a rule expanding overtime pay eligibility to up to 1.3 million workers.

Under the new rule, most salaried workers who earn less than about $35,500 per year will be eligible for time-and-a-half overtime pay, up from the current threshold of about $23,700.

The rule is scheduled to take effect on Jan. 1.

The Obama administration raised the threshold considerably higher in 2016 in an effort to cover millions more workers, but a federal judge first suspended and later invalidated the rule, which never took effect.

The current salary limit was set by the George W. Bush administration in 2004.

“This rule brings a common-sense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers,” Patrick Pizzella, the acting labor secretary, said in a statement.