Celine McNicholas, Zane Mokhiber, and Adam Chaikof
Economic Policy Institute
Given that wage theft disproportionately affects workers from low-income households—who are already struggling to make ends meet—the loss of wages can be devastating. And these recovery numbers likely dramatically underrepresent the pervasiveness of wage theft—it has been estimated that low-wage workers lose more than $50 billion annually to wage theft.
Amid endless political cacophony in Washington, D.C., House Republicans are quietly advancing legislation that would drive a freight train through a central tenet of New Deal-era labor law: overtime. With Obama’s landmark overtime expansion blocked in the courts, conservatives roll out a plan that would undo overtime pay as we know it.
Changes in labor market policies and practices have played an important role in the dynamic of rising inequality and wage stagnation for the vast majority. One example of a change in labor market policy that has eroded the standing of typical workers vis-à-vis their employers and contributed to this dynamic is the right of workers to earn overtime pay premiums for working excessive hours.
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