No Tax on Overtime for All Workers Act

This bill changes the federal tax law that allows a deduction for overtime pay by expanding what counts as "qualified overtime compensation." It would include overtime pay required under the Fair Labor Standards Act that is above a worker's regular rate. It would also include pay above the regular rate earned under an agreement made in advance between a worker (or their union) and a single employer for work beyond a standard number of hours of at least 40 hours in a 7-day period. For workers and employers covered by the Railway Labor Act, such as rail and flight crews, it would include pay for hours beyond scheduled or maximum hours set by their agreement. The change would apply to tax years beginning after December 31, 2024.

Full text and official record on Congress.gov

Sponsors

• Nicole Malliotakis Republican sponsor
• 57 cosponsors