No Tax on Overtime for All Workers Act

This bill changes the federal tax law definition of "qualified overtime compensation," which is the overtime pay that workers can deduct from their taxable income. Overtime pay required by the Fair Labor Standards Act above a worker's regular rate would still count. The bill would also count pay above the regular rate that is set by an agreement made before the work between a worker (or a union) and a single employer, if the work goes beyond a standard of at least 40 hours in a 7-day period. For workers and employers covered by the Railway Labor Act, such as rail and airline crews, it would count extra pay for hours beyond scheduled or maximum hours set in their agreement. The change would apply to tax years beginning after December 31, 2024.

Full text and official record on Congress.gov

Sponsors

• James C. Justice Republican sponsor
• 1 cosponsors