119 HR 4740 IH: No Tax on Overtime for All Workers Act U.S. House of Representatives 2025-07-23 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 4740IN THE HOUSE OF REPRESENTATIVESJuly 23, 2025Mrs. Sykes introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation.

1.

Short title

This Act may be cited as the No Tax on Overtime for All Workers Act.

2.

Deduction for certain overtime compensation

(a)

In general

Section 225(c)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1)

In general

For purposes of this section, the term qualified overtime compensation means— (A)any overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed, or (B)any compensation paid to an individual that is in excess of the regular rate at which such individual is employed if such compensation is paid— (i)at a rate of not less than one and one-half times such regular rate, (ii)for work for a single employer that is in excess of a standard number of hours of such work for a specified period of time, and (iii)as required by a collective bargaining agreement, or an agreement between such employer and employee, which— (I)was entered into before the performance of the work, and (II)specifies that such standard number of hours for a specified period of time is not less than 40 hours for a 7-day work period.. (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2024.