No Tax on Overtime for All Workers Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4740 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4740

  To amend the Internal Revenue Code of 1986 to allow a deduction for
                     certain overtime compensation.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2025

  Mrs. Sykes introduced the following bill; which was referred to the
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

  To amend the Internal Revenue Code of 1986 to allow a deduction for
                     certain overtime compensation.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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.
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