This legislative proposal seeks to amend the Internal Revenue Code of 1986 by introducing a new deduction for qualified overtime compensation . The bill defines this compensation in two main ways: first, as overtime pay required under the Fair Labor Standards Act of 1938 that exceeds an individual's regular rate of pay. Secondly, it includes other compensation paid above the regular rate for work performed for a single employer, provided there's a prior agreement between the employee and employer. This additional compensation must be for work exceeding a standard number of hours, typically at least 40 hours in a 7-day period, or for work beyond scheduled hours for employees covered by the Railway Labor Act. The amendment is slated to take effect for taxable years beginning after December 31, 2024, aiming to provide tax relief for workers earning overtime.