# 119-hr-4740: No Tax on Overtime for All Workers Act

119-hr-4740, No Tax on Overtime for All Workers Act, is a 119th Congress bill sponsored by Rep. Sykes, Emilia Strong [D-OH-13] (D-OH); status introduced; PRIA reads it as touching household money (as of 2026-08-01).

- Canonical: https://policyrisk.com/legislation/119-hr-4740
- As of: 2026-08-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-4740
- Congress: 119
- Title: No Tax on Overtime for All Workers Act
- Status: introduced
- Introduced: 2025-07-23
- Sponsor: Rep. Sykes, Emilia Strong [D-OH-13] (D-OH)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-08-01

## Summary

**This bill would create a new tax deduction for overtime pay.** It defines "qualified overtime compensation" so more overtime payments can qualify for a deduction under Section 225 of the Internal Revenue Code. - Employers: Would be able to deduct a broader set of overtime payments as "qualified overtime compensation" under Section 225 for taxable years beginning after December 31, 2024. - Workers and pay rules: Overtime that is required under the Fair Labor Standards Act and exceeds the regular rate can qualify. Overtime also qualifies if paid at not less than 1.5 times the regular rate and tied to work beyond a set standard number of hours. - Collective bargaining and agreements: To qualify under the second pathway the overtime must be for a single employer and required by a collective bargaining agreement or an agreement entered into before the work. That agreement must specify a standard period with not less than 40 hours in a 7-day period.

## Cosponsors (1)

- Rep. Walkinshaw, James R. [D-VA-11] (D-VA), 2026-01-13T00:00:00.000Z

## Provisions PRIA read

- Lower taxes on overtime pay: benefit, high. This bill would let you deduct some overtime pay from your taxable income. You could deduct overtime that is required by the Fair Labor Standards Act and paid above your regular rate. You could also deduct pay that is at least 1.5 times your regular rate if it meets strict rules. It must be for one…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-4393: DIGNIDAD (Dignity) Act of 2025
- 119-hr-7853: PrEP Access and Coverage Act of 2026
- 119-hr-51: Washington, D.C. Admission Act

## Sources
- [119-hr-4740 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/4740)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-4393: DIGNIDAD (Dignity) Act of 2025](https://policyrisk.com/legislation/119-hr-4393)
- [119-hr-7853: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-hr-7853)
- [119-hr-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-hr-51)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-4740 (as of 2026-08-01).