HR5475-119

In Committee

No Tax on Overtime for All Workers Act

119th Congress Introduced Sep 18, 2025

Summary

What This Bill Does

The No Tax on Overtime for All Workers Act broadens the tax-code definition of qualified overtime compensation. Section 225 would cover overtime compensation required under section 7 of the Fair Labor Standards Act to the extent the pay exceeds the worker's regular rate. It would also cover compensation above the regular rate paid under a pre-work agreement between an employee or labor organization and employer when the work exceeds a standard number of hours, so long as the standard is not less than 40 hours in a seven-day work period. For Railway Labor Act employees, including crewmembers, flight crewmembers, and rail operating craft employees, the agreement can key eligibility to scheduled or anticipated duty hours or maximum duty-hour thresholds. The change applies to taxable years beginning after December 31, 2024.

Who Benefits and How

Hourly workers receiving FLSA overtime benefit because more overtime premium pay can qualify for the federal deduction. Unionized workers with negotiated overtime agreements benefit because qualifying above-regular-rate pay is included when the agreement meets the statutory hour tests. Airline crew members benefit because Railway Labor Act duty-hour overtime arrangements can qualify. Rail operating craft employees benefit because scheduled or maximum duty-hour arrangements can qualify for the deduction.

Who Bears the Burden and How

Internal Revenue Service examiners must administer a broader definition of qualified overtime compensation. Payroll departments must identify regular-rate pay, above-regular-rate overtime, qualifying agreements, and applicable taxable years. Employers with negotiated overtime arrangements must document pre-work agreements and hour thresholds. Federal taxpayers bear the revenue cost of expanding the overtime deduction.

Key Provisions

  • Expands qualified overtime compensation for the section 225 deduction.
  • Adds FLSA overtime premiums above the worker's regular rate.
  • Adds negotiated compensation above regular rates when work exceeds qualifying hour thresholds.
  • Covers Railway Labor Act crew and rail operating craft duty-hour arrangements.
  • Applies to taxable years beginning after December 31, 2024.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Expands the Internal Revenue Code deduction for qualified overtime compensation so it covers Fair Labor Standards Act overtime premiums and negotiated overtime-like compensation above regular rates, including Railway Labor Act crew and rail operating craft arrangements, for taxable years beginning after December 31, 2024.

Key Policy Areas

Tax, Labor, Wages

Primary Purpose

Expands the Internal Revenue Code deduction for qualified overtime compensation so it covers Fair Labor Standards Act overtime premiums and negotiated overtime-like compensation above regular rates, including Railway Labor Act crew and rail operating craft arrangements, for taxable years beginning after December 31, 2024.

Policy Domains

Tax Labor Wages

Resolution provisions

Identified Gains
  • Hourly workers receiving FLSA overtime
  • Unionized workers
  • Airline crew members
  • Rail operating craft employees
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Unionized workers:
Airline crew members:
Rail operating craft employees:
Hourly workers receiving FLSA overtime:
Identified Costs
  • Internal Revenue Service examiners
  • Payroll departments
  • Employers with negotiated overtime arrangements
  • Federal taxpayers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Federal taxpayers:
Payroll departments:
Internal Revenue Service examiners:
Employers with negotiated overtime arrangements:

Legislative Progress

In Committee
Introduced Committee Passed
Sep 18, 2025

Ms. Malliotakis (for herself, Mrs. Sykes, Mr. LaLota, Mr. Suozzi, …

Sep 18, 2025

Referred to the House Committee on Ways and Means.

Sep 18, 2025

Introduced in House

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Labor
2 mentions across 1 clause
+2 positive

Hourly workers receiving FLSA overtime, Unionized workers

Transportation
2 mentions across 1 clause
+2 positive

Airline crew members, Rail operating craft employees

Government
1 mention across 1 clause
-1 negative

Internal Revenue Service examiners

Payroll Services
1 mention across 1 clause
-1 negative

Payroll departments

Taxpayers
1 mention across 1 clause
-1 negative

Taxpayers

2/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Tax Labor Wages

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology