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News from EPI New EPI Feature Answers Frequently Asked Questions about Overtime Pay Rules and Explains Why They Should Be Updated

The U.S. Department of Labor is overhauling overtime pay rules, which have dramatically eroded and currently allow employers to deny overtime pay to millions of workers who would have received it in the past. A new Economic Policy Institute feature outlines why now is the time to update overtime pay rules and explains that one reason Americans’ paychecks are stagnant is that millions of middle-class and even lower-middle-class workers are working overtime and are not getting paid for it. Why It’s Time to Update Overtime Pay Rules: Frequently Asked Questions provides a comprehensive overview of the issue and answers key questions, including who’s eligible for overtime pay, why the current rules are outdated, how they can be updated, who would benefit from these changes, and what economic effects these changes could have.

“One major and absolutely fixable reason Americans haven’t seen a raise is that their right to earn overtime pay for working excessive hours has eroded,” said EPI Vice President Ross Eisenbrey. “Updating overtime rules is necessary not only to meet historical standards but to reinforce the ideal that workers deserve to be compensated fairly for their time and work.”

Key findings include: