No Tax on Overtime for All Workers Act
Sponsored By: Representative Malliotakis
Introduced
Summary
Would make certain overtime pay tax-deductible by expanding the tax code's definition of "qualified overtime compensation." The change targets overtime required under the Fair Labor Standards Act and overtime set by pre-work agreements, including those covered by the Railway Labor Act.
Show full summary
- Workers: Workers who earn overtime required by the Fair Labor Standards Act or under pre-arranged agreements would have that pay classified as "qualified overtime compensation" for tax rules. Some agreements must specify a standard workweek not less than 40 hours.
- Employers: Employers would be able to deduct that defined overtime compensation under the Internal Revenue Code provision the bill changes.
- Timing and funding: The rule would apply to tax years beginning after December 31, 2024, and the bill contains no sunset and no new mandatory funding.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Lower taxes on workers' overtime pay
This bill would let employees deduct qualified overtime pay from taxable income. Qualified overtime would include Fair Labor Standards Act overtime above your regular rate. It would also include extra pay above your regular rate under a written agreement made before the work. The agreement must set a standard of at least 40 hours in a 7-day period. For airline and railroad workers under the Railway Labor Act, extra hours beyond scheduled or agreed limits would count. This would apply to tax years starting after December 31, 2024, and the text sets no dollar cap.
Sponsors & CoSponsors
Sponsor
Malliotakis
NY • R
Cosponsors
Sykes
OH • D
Sponsored 9/18/2025
LaLota
NY • R
Sponsored 9/18/2025
Suozzi
NY • D
Sponsored 9/18/2025
Fitzpatrick
PA • R
Sponsored 9/18/2025
Horsford
NV • D
Sponsored 9/18/2025
Bresnahan
PA • R
Sponsored 9/26/2025
Lawler
NY • R
Sponsored 9/26/2025
Elfreth
MD • D
Sponsored 10/3/2025
Bacon
NE • R
Sponsored 10/3/2025
Vindman
VA • D
Sponsored 10/3/2025
Kean
NJ • R
Sponsored 10/3/2025
Deluzio
PA • D
Sponsored 10/3/2025
Riley (NY)
NY • D
Sponsored 10/3/2025
Mackenzie
PA • R
Sponsored 10/6/2025
Dingell
MI • D
Sponsored 10/6/2025
Smith (NJ)
NJ • R
Sponsored 11/20/2025
Budzinski
IL • D
Sponsored 11/20/2025
Kennedy (NY)
NY • D
Sponsored 12/5/2025
Edwards
NC • R
Sponsored 12/5/2025
Garbarino
NY • R
Sponsored 2/4/2026
Neguse
CO • D
Sponsored 2/4/2026
Kiggans (VA)
VA • R
Sponsored 2/9/2026
Boyle (PA)
PA • D
Sponsored 2/9/2026
Cammack
FL • R
Sponsored 2/12/2026
Waters
CA • D
Sponsored 2/20/2026
Stauber
MN • R
Sponsored 2/20/2026
Miller (OH)
OH • R
Sponsored 3/4/2026
Garamendi
CA • D
Sponsored 3/4/2026
Salazar
FL • R
Sponsored 3/12/2026
Gillen
NY • D
Sponsored 3/12/2026
Schmidt
KS • R
Sponsored 3/16/2026
Levin
CA • D
Sponsored 3/16/2026
Langworthy
NY • R
Sponsored 3/25/2026
Tokuda
HI • D
Sponsored 3/25/2026
Roll Call Votes
No roll call votes available for this bill.
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