No Tax on Overtime for All Workers Act

This bill proposes to amend the Internal Revenue Code of 1986 by introducing a new deduction for qualified overtime compensation . The primary goal is to reduce the taxable income for individuals who earn additional pay for working beyond their regular hours, thereby providing a tax benefit to overtime earners. The legislation specifically defines "qualified overtime compensation" to include two main categories. First, it covers any overtime compensation required under Section 7 of the Fair Labor Standards Act of 1938 that exceeds an individual's regular rate of pay. Second, it includes compensation paid in excess of the regular rate for a single employer, provided there's a prior agreement and the work either exceeds a standard 40-hour work week or, for employees covered by the Railway Labor Act , is beyond scheduled hours or exceeds a maximum number of hours per agreement. This deduction would become effective for taxable years beginning after December 31, 2024.