The rules around overtime in America are changing, and the upcoming election could decide whether workers earn more or less. It all depends on how you vote—and how deeply you care about democracy and workers’ rights.

Understanding Overtime: Federal vs. State Rules

In the U.S., overtime laws are set by the Fair Labor Standards Act (FLSA), part of the U.S. Department of Labor. This federal law ensures that most workers who work more than 40 hours a week receive “time-and-a-half” for those extra hours. This federal law has been the backbone of wage protections for years. States, however, can have stricter rules. For instance, California pays overtime for hours worked beyond eight in a single day, while most states follow the weekly 40-hour rule.

Why is overtime so important? For millions of Americans, overtime makes a big difference. Around 55% of U.S. workers are eligible for overtime; over 34 million work more than 40 hours a week. Overtime pay helps many families make ends meet, especially in healthcare, food service, and retail industries.

Trump’s Plan: No Taxes on Overtime

Recently, former President Donald Trump introduced a proposal that many workers might find appealing—eliminating income taxes on overtime pay. This plan targets workers who work extra hours beyond the standard 40-hour workweek.

Trump’s idea is straightforward: if you work overtime, you shouldn’t have to pay additional taxes on the income you earn from those extra hours. This could financially boost many hourly workers, especially those who rely on overtime to supplement their wages. By removing taxes on overtime, Trump aims to increase workers’ take-home pay and encourage people to work more hours.

The logic behind this proposal is that incentivizing overtime will stimulate economic activity and reward hard-working Americans. For workers in industries like healthcare, food service, and manufacturing, where overtime is common, this could significantly increase their disposable income. Trump’s rhetoric appeals to the idea of rewarding effort—those willing to work more should be allowed to keep more of their earnings without the government taking a cut.

However, this plan comes with a significant financial impact on the country as a whole.

Trump’s Plan: More of a Concept of a Plan

Experts estimate that eliminating taxes on overtime pay could cost the U.S. up to $1.1 trillion over the next ten years. These figures raise concerns about how the federal government would offset the lost revenue. While the proposal might benefit workers in the short term, it risks long-term fiscal consequences, especially for programs that rely on payroll taxes, such as Social Security and Medicare.

Payroll taxes primarily fund these programs, and any reduction in tax revenue could jeopardize their sustainability. If overtime pay is exempt from income tax, would it also be exempt from payroll taxes? The proposal leaves many of these critical questions unanswered.

Furthermore, critics argue that this move, while beneficial to some, leaves out salaried workers and higher earners who aren’t eligible for overtime. This raises the question—if tax cuts on overtime are designed to help workers, why not extend the same tax relief to all income earners? Why focus solely on overtime?

By framing the plan as a targeted benefit for hourly workers, Trump taps into a specific voting base. However, the (un)intended consequences of this tax policy are uncertain and most likely to impact the very people he’s targeting with the policy.

Fiscal Conservatives Worry About Trump’s Disregard for the National Debt

The proposal also faces significant opposition from fiscal conservatives concerned about the impact of the national deficit. Trump’s broader tax agenda, which includes cutting taxes on tips and eliminating taxes on Social Security benefits, could add to the already mounting national debt. These potential cuts create a conflict between providing immediate relief to workers and maintaining the long-term health of government finances.

In sum, while Trump sells his proposal to eliminate overtime taxes to voters as a populist measure designed to put more money in workers’ pockets, the broader economic consequences—ranging from impacts on federal revenue to questions about the sustainability of social programs—make it a more complicated issue.

But Wait, There’s More: Project 2025 Eliminates Overtime

Here’s why Trump can appear to be so generous. Because overtime will become the exception. There is no need to tax something that will be nearly impossible to get

Project 2025, a proposal backed by the Heritage Foundation and conservative leaders, takes a different approach to overtime that could take it away altogether. The plan calls for employers to calculate monthly work hours, not just weekly. This would mean no time-and-a-half pay for working extra hours per week. Employers could move hours around to avoid paying workers more, and millions of Americans would lose out on critical overtime earnings.

This shift would hit low-income workers the hardest, cutting their take-home pay and increasing wage inequality. It directly contrasts with Trump’s plan to give overtime workers a tax break. Project 2025’s ultimate goal? Reducing regulations and giving businesses more power over workers, potentially making labor cheaper at the expense of fair pay.

How Does This Affect Democracy and the Election?

Why does overtime matter in this election? Earning fair pay is tied directly to economic freedom, a cornerstone of democracy. Project 2025 and Trump’s overtime tax cut reflect two sides of a growing debate. Do we prioritize the power of businesses or the rights of workers? How these policies evolve will determine whether working-class Americans can continue to benefit from the protections put in place to secure fair wages.

When you vote this year, you’re not just deciding on political leaders but also shaping how the country treats its workers. The right to earn a living wage, with protections like overtime, is part of the larger struggle for equality and fairness in America. This election will test whether we stand up for the working class or let corporate interests roll back years of progress.

By understanding the differences between Trump’s overtime tax plan and Project 2025’s push to eliminate it, you’ll see that this election isn’t just about taxes—it’s about whether our democracy continues to protect workers’ rights. Overtime pay is more than a paycheck; it symbolizes the balance between labor and power in America. Your vote could tip the scales.