Takeaways For tax years 2025 -2028, the One Big Beautiful Bill Act (OBBBA) allows employees to take an above-the-line tax deduction on qualified overtime
Articles Discussing Overtime Under The FLSA.
New IRS Guidance Pinpoints How Individuals May Take Tax Breaks for Tips and Overtime
On November 21, 2025, the Internal Revenue Service (IRS) and the U.S. Department of the Treasury released guidance outlining how workers can calculate their tax deduction for tips and overtime pay for the 2025 tax year when their employer does not separately report the information. The guidance provides specific examples
IRS Provides Guidance for Taxpayers to Claim Deductions for Qualified Tips and Qualified Overtime Compensation
IRS Provides Guidance for Taxpayers to Claim Deductions for Qualified Tips and Qualified Overtime Compensation
Employees have been wondering how they will determine the amount of their qualified tips and qualified overtime eligible for deduction under the One Big Beautiful Bill Act.
tgelbman@littler.com Fri, 11/21/2025 – 14:41
IRS Will Not Impose Penalties Based on Reporting of “No Tax on Tips” and “No Tax on Overtime” for 2025
IRS Will Not Impose Penalties Based on Reporting of “No Tax on Tips” and “No Tax on Overtime” for 2025
In a welcome development for employers that were struggling to determine how to comply with the reporting requirements of the “One Big Beautiful Bill Act” relating to “no tax on
Employers Won’t Be Fined for Incorrect Reporting of 2025 Tips and Overtime, Treasury Department and IRS Say
On November 5, 2025, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued guidance confirming employers will not be penalized for failing to report cash tips and overtime compensation in the manner required in the latest federal budget reconciliation bill. This guidance may be especially relevant
Emergency Pay and Overtime: DOL Issues New Compliance Guidance
On September 30, 2025, the US Department of Labor (DOL) issued an opinion letter demonstrating how to calculate overtime pay for nonexempt employees who are paid extra compensation like shift…
Department of Labor Issues Opinion Letter on Calculating Overtime
Department of Labor Issues Opinion Letter on Calculating Overtime
On September 30, 2025, the U.S. Department of Labor (DOL) issued an opinion letter containing important reminders about how to calculate overtime pay for non-exempt employees who earn amounts in addition to their base hourly wage.
tgelbman@littler.com Thu, 10/02/2025 – 16:58
DOL Proposes to Decodify 450+ FLSA Interpretive Guidance: What Does It Mean for Employers?
TakeawaysDOL Wage and Hour Division plans to remove certain FLSA non-binding interpretive guidance documents from the CFR and relocate them to the agency’s internal Field Operations Handbook.Guidance on the 7(i) exemption for retail or service establishments and the Motor Carrier Act exemption are among the key interpretive rules affected by the proposal.DOL has said it may decide to revise or rescind the affected rules in the future, and it may do so without undertaking formal rulemaking.Related link
The Federal Tax Deductions for Tips and Overtime Pay: Opportunities for Restaurants Employers
The One Big Beautiful Bill Act contains new, temporary laws, including available tax deductions for earnings on tips for tipped employees and overtime wage earnings of all employees.
It’s Official—No Tax on Tips, No Tax on Overtime Through 2028
One of President Donald Trump’s 2024 campaign messages was a promise to implement a no-tax-on-tips and no-tax-on-overtime law. On July 3, 2025, the U.S. Congress passed the “One Big Beautiful Bill,” and President Trump signed the bill into law on July 4. The White House offers a calculator for employees
What Employers Need to Know About No Tax on Tips and No Tax on Overtime
What Employers Need to Know About No Tax on Tips and No Tax on Overtime
On July 3, 2025, the U.S. House of Representatives narrowly passed H.R.1, the so-called “One Big Beautiful Bill Act,” ending a dramatic journey through Congress that dominated headlines in recent weeks. President Donald J. Trump
How Will Federal Bills Eliminating Tax on Tips and Overtime Impact Employers?
TakeawaysThe House and Senate bills differ in key ways, including that while the House bill would provide a deduction on tips and overtime earnings, the Senate bill provides a deduction for tips only.It remains to be seen which measures will pass in Congress. President Trump is expected to sign a bill that provides some sort of tax relief on tips or overtime pay.Employers could consider restructuring compensation policies.Article
SCOTUS: $200K Per Year And Employee Still Entitled To Overtime Pay
U.S. Supreme Court Holds Employees Paid on a ‘Day Rate’ Basis Are Entitled to Overtime Pay
Affirming an en banc decision of the U.S. Court of Appeals for the Fifth Circuit, the U.S. Supreme Court has held that an employer’s day-rate pay structure did not satisfy the “salary basis” component of the “white collar” executive exemption under the Fair Labor Standards Act (FLSA), even though the employee at issue earned more than $200,000 per year and unquestionably met the salary-level and duties requirements of that exemption.
ELEVENTH CIRCUIT REINFORCES FLUCTUATING WORKWEEK METHOD OF PAYING OVERTIME
The federal Department of Labor (DOL) has long interpreted the Fair Labor Standards Act (FLSA) to allow an employer to pay a nonexempt employee a fixed salary for all hours worked in a workweek and “half-time” of an employee’s regular rate for all hours worked greater than forty in a workweek, instead of “time-and-a-half” pay for those hours. This method of pay — called the “fluctuating workweek method” — may be used when a nonexempt employee’s weekly hours vary.