Bill · S. 4310· Senate(119-S-4310)
No Tax on Overtime for All Workers Act
- Introduced
- 4/15/2026
- Last activity
- 4/15/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- James Justice
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill, titled the "No Tax on Overtime for All Workers Act," aims to amend the Internal Revenue Code of 1986. It proposes to allow a deduction for certain types of overtime compensation. This includes overtime required under the Fair Labor Standards Act of 1938. It also covers compensation for work exceeding a standard number of hours agreed upon with an employer. Additionally, it addresses specific work scenarios covered by the Railway Labor Act. The changes would take effect for taxable years beginning after December 31, 2024.
Yes· 3 of 9
Would middle-income households be better off under this?+5
The bill reduces the tax burden on income earned through overtime hours.
Does this cut taxes for middle-income families?+5
The bill allows workers to deduct qualified overtime compensation from their taxable income.
Would people in middle age be better off under this?+4
Middle-aged workers are a primary demographic for overtime-heavy labor and would benefit from the deduction.
The opposite
Would business owners be better off under this?-2
While it benefits employees, it does not directly reduce costs for employers, and may indirectly increase pressure on wage negotiations.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Deduction for Overtime Pay: Under Section 2, the bill would allow individuals to deduct "qualified overtime compensation" from their taxes. This includes pay that exceeds a regular rate for work required under the Fair Labor Standards Act (Section 2(a)(A)).
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Flexibility for Specific Employment Agreements: The bill provides a deduction for compensation paid under specific agreements between employees or labor organizations and employers (Section 2(a)(B)(i)). This applies when work exceeds a standard number of hours that is at least 40 hours for a 7-day period (Section 2(a)(B)(ii)(I)).
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Benefits for Transportation Workers: For employees such as crewmembers or rail operating craft employees covered by the Railway Labor Act, the bill allows for a deduction on work that goes beyond scheduled hours or exceeds a maximum number of hours (Section 2(a)(B)(ii)(II)).
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Low Income Households+4Good For Middle Aged+4Good For Union Workers+4Good For Young Adults+3Good For Urban Residents+2Good For Business Owners-2
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Union Protections+3Improves Economic Growth+2
- 5/11/2026
- 1 Cosponsor added.
- 4/15/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Maria CantwellDemocrat · Washington