Overtime

One reason Americans’ paychecks have not been keeping pace with their productivity is that millions of lower-middle-class and even middle-class workers have been working overtime but not getting paid for it. In 2016, the Department of Labor updated the rule that requires employers to pay workers time-and-a-half if they work overtime. The updated overtime rule, which went into effect on December 1, 2016, raises the threshold below which salaried workers are automatically eligible for overtime pay to $47,476, up from $23,660. The Labor Department has not implemented or enforced the rule due in part to a legal challenge.