No Tax on Overtime for All Workers Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5475 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 5475 To amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES September 18, 2025 Ms. Malliotakis (for herself, Mrs. Sykes, Mr. LaLota, Mr. Suozzi, Mr. Fitzpatrick, and Mr. Horsford) 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-- ``(i) such compensation is paid for work for a single employer pursuant to an agreement between the employee (or labor organization representing such employee) and employer entered into before the performance of the work, and ``(ii) either-- ``(I) such work is in excess of a standard number of hours of such work for a specified period of time, and such agreement specifies that such standard number of hours for a specified period of t