Ok, done.

code/modules/paperwork/clipboard.dm

@@ -25,14 +25,14 @@
 	QDEL_NULL(toppaper)	//let movable/Destroy handle the rest
 	return ..()
 
-/obj/item/clipboard/update_icon()
-	cut_overlays()
+/obj/item/clipboard/update_overlays()
+	. = ..()
 	if(toppaper)
-		add_overlay(toppaper.icon_state)
-		copy_overlays(toppaper)
+		. += toppaper.icon_state
+		. += toppaper.overlays
 	if(haspen)
-		add_overlay("clipboard_pen")
-	add_overlay("clipboard_over")
+		. += "clipboard_pen"
+	. += "clipboard_over"
 
 
 /obj/item/clipboard/attackby(obj/item/W, mob/user, params)

code/modules/paperwork/contract.dm

@@ -7,13 +7,14 @@
 	var/datum/mind/target
 	item_flags = NOBLUDGEON
 
+/obj/item/paper/contract/ComponentInitialize()
+	return
+	. = ..()
+	AddElement(/datum/element/update_icon_blocker)
+
 /obj/item/paper/contract/proc/update_text()
 	return
 
-/obj/item/paper/contract/update_icon()
-	return
-
-
 /obj/item/paper/contract/employment
 	icon_state = "paper_words"
 

code/modules/paperwork/folders.dm

@@ -28,11 +28,10 @@
 	icon_state = "folder_white"
 
 
-/obj/item/folder/update_icon()
-	cut_overlays()
+/obj/item/folder/update_overlays()
+	. = ..()
 	if(contents.len)
-		add_overlay("folder_paper")
-
+		. += "folder_paper"
 
 /obj/item/folder/attackby(obj/item/W, mob/user, params)
 	if(istype(W, /obj/item/paper) || istype(W, /obj/item/photo) || istype(W, /obj/item/documents))

code/modules/paperwork/paper.dm

@@ -78,8 +78,7 @@
 		return get_dist(src, target) < 2
 	return ..()
 
-/obj/item/paper/update_icon()
-
+/obj/item/paper/update_icon_state()
 	if(resistance_flags & ON_FIRE)
 		icon_state = "paper_onfire"
 		return
@@ -379,8 +378,9 @@
 	icon_state = "scrap"
 	slot_flags = null
 
-/obj/item/paper/crumpled/update_icon()
-	return
+/obj/item/paper/crumpled/ComponentInitialize()
+	. = ..()
+	AddElement(/datum/element/update_icon_blocker)
 
 /obj/item/paper/crumpled/bloody
 	icon_state = "scrap_bloodied"

code/modules/paperwork/paper_cutter.dm

@@ -34,13 +34,13 @@
 		return (BRUTELOSS)
 
 
-/obj/item/papercutter/update_icon()
-	..()
-	cut_overlays()
+/obj/item/papercutter/update_icon_state()
 	icon_state = (storedcutter ? "[initial(icon_state)]-cutter" : "[initial(icon_state)]")
-	if(storedpaper)
-		add_overlay("paper")
 
+/obj/item/papercutter/update_overlays()
+	. = ..()
+	if(storedpaper)
+		. += "paper"
 
 /obj/item/papercutter/attackby(obj/item/P, mob/user, params)
 	if(istype(P, /obj/item/paper) && !storedpaper)

code/modules/paperwork/paperbin.dm

@@ -51,7 +51,7 @@
 	else if(istype(over_object, /obj/screen/inventory/hand))
 		var/obj/screen/inventory/hand/H = over_object
 		M.putItemFromInventoryInHandIfPossible(src, H.held_index)
-		
+
 	else
 		. = ..()
 
@@ -125,14 +125,16 @@
 		. += "It doesn't contain anything."
 
 
-/obj/item/paper_bin/update_icon()
+/obj/item/paper_bin/update_icon_state()
 	if(total_paper < 1)
 		icon_state = "paper_bin0"
 	else
 		icon_state = "[initial(icon_state)]"
-	cut_overlays()
+
+/obj/item/paper_bin/update_overlays()
+	. = ..()
 	if(bin_pen)
-		add_overlay(mutable_appearance(bin_pen.icon, bin_pen.icon_state))
+		. += mutable_appearance(bin_pen.icon, bin_pen.icon_state)
 
 /obj/item/paper_bin/construction
 	name = "construction paper bin"

code/modules/paperwork/paperplane.dm

@@ -55,12 +55,12 @@
 	sleep(10)
 	return (BRUTELOSS)
 
-/obj/item/paperplane/update_icon()
-	cut_overlays()
+/obj/item/paperplane/update_overlays()
+	. = ..()
 	var/list/stamped = internalPaper.stamped
 	if(stamped)
 		for(var/S in stamped)
-			add_overlay("paperplane_[S]")
+			. += "paperplane_[S]"
 
 /obj/item/paperplane/attack_self(mob/user)
 	to_chat(user, "<span class='notice'>You unfold [src].</span>")

code/modules/paperwork/pen.dm

@@ -179,9 +179,10 @@
 	sharpness = IS_SHARP
 	var/on = FALSE
 
-/obj/item/pen/edagger/Initialize()
+/obj/item/pen/edagger/ComponentInitialize()
 	. = ..()
 	AddComponent(/datum/component/butchering, 60, 100, 0, 'sound/weapons/blade1.ogg')
+	AddElement(/datum/element/update_icon_updates_onmob)
 
 /obj/item/pen/edagger/get_sharpness()
 	return on * sharpness
@@ -209,10 +210,9 @@
 		to_chat(user, "<span class='warning'>[src] is now active.</span>")
 	update_icon()
 
-/obj/item/pen/edagger/update_icon()
+/obj/item/pen/edagger/update_icon_state()
 	if(on)
-		icon_state = "edagger"
-		item_state = "edagger"
+		icon_state = item_state = "edagger"
 		lefthand_file = 'icons/mob/inhands/weapons/swords_lefthand.dmi'
 		righthand_file = 'icons/mob/inhands/weapons/swords_righthand.dmi'
 	else