The Biden administration’s 2024 overtime rule sought to significantly expand overtime pay eligibility for millions of salaried workers by raising the salary threshold to $58,656 per year by Jan. 1, 2025. However, a federal judge in Texas blocked and subsequently vacated the rule in late 2024, ruling that the Department of Labor exceeded its authority.
Under the Biden administration, DOL issued a new regulation on overtime pay for these salaried workers, which would have expanded the right to overtime pay for 4.3 million workers, giving the right to overtime pay protections to most workers making under roughly $58,656 per year.
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
The main "new overtime rule" for 2025 isn't about earning overtime but a significant federal tax break: the One Big Beautiful Bill Act (OBBBA) provides a temporary income tax deduction for qualifying overtime pay (up to $12,500 for individuals, $25,000 joint) for tax years 2025-2028, phasing out at higher incomes. This deduction applies only to federal income tax, not payroll taxes, and is for FLSA-compliant overtime, with the IRS offering transition guidance for 2025 reporting.
The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.
Kansas: According to Kansas law, overtime kicks in at the 46-hour mark. However, all states are required to follow federal law, which requires overtime pay after someone reaches 40 hours per week.
The no tax on overtime bill was included in the One Big Beautiful Bill that President Trump signed into law in July 2025. This new law creates a first-of-its-kind tax exemption for certain overtime pay, effective beginning in tax year 2025.
Employers in states that haven't set their own higher minimum wage, or have one below $7.25, are generally required to pay at least the federal minimum of $7.25/hour, including places like Alabama, Louisiana, Mississippi, South Carolina, Tennessee, Georgia, Oklahoma, and Wyoming, though many local areas within those states might have higher rates. While the number of people earning exactly $7.25 has decreased, it still applies to some workers, particularly those in specific industries or locations with no higher local mandates, with the federal minimum unchanged since 2009.
This bill shortens the standard workweek under federal law from 40 hours to 32 hours over a three-year phase in period. It also requires specified overtime pay for workdays longer than eight hours.
Each team will have a possession, but the game does not automatically end if the first team scores a touchdown. If the score is still tied after each team gets one possession, the next score wins. An exception is made if the team that first possesses the ball commits a safety.
We hadn't talked about it, no." Armstead added that he first realized that the postseason overtime rules were different when he saw them displayed on the scoreboard at Allegiant Stadium. "They put it on the scoreboard, and everyone was like 'Oh, even if you score, they get a chance still,'" Armstead said.
The most significant recent "new overtime rule" isn't about who gets overtime, but a temporary federal tax change: the "No Tax on Overtime" deduction for the premium portion (the extra 0.5x) of FLSA overtime pay, available for tax years 2025-2028, allowing up to $12,500 ($25,000 joint) to be deducted from federal income tax for non-exempt workers, subject to income phase-outs. This stems from the July 2025 One Big Beautiful Bill Act (OBBB) and applies to federal income tax only, not Social Security or Medicare.
Effective 2025, the new California state minimum wage will increase to $16.50 an hour (up from $16 an hour). This fifty-cent increase also moves the minimum salary test for the primary overtime exemptions (administrative, executive, professional) to $68,640 annually or $5,720 monthly.
Trump Judge Blocks Overtime Pay for 4 million Workers – Posted November 18, 2024. On November 15, a federal judge in Texas blocked a rule that would have expanded overtime pay to millions of salaried workers throughout the US.
1: Shampooer. The worst-paying job on the list is shampooers. They work in hair salons washing and rinsing customers' hair. Mean hourly wages are $14.07 and mean annual wages are $29,260.
$80,000 a year is approximately $38.46 per hour, assuming a standard 40-hour workweek (2080 working hours per year), calculated by dividing your annual salary by 2080. This breaks down to about $1,538 weekly, $3,077 bi-weekly, or $6,667 monthly before taxes.
The main "new overtime rule" for 2025 isn't about earning overtime but a significant federal tax break: the One Big Beautiful Bill Act (OBBBA) provides a temporary income tax deduction for qualifying overtime pay (up to $12,500 for individuals, $25,000 joint) for tax years 2025-2028, phasing out at higher incomes. This deduction applies only to federal income tax, not payroll taxes, and is for FLSA-compliant overtime, with the IRS offering transition guidance for 2025 reporting.
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
Your employer must pay you at the overtime rate for the extra hours you worked. Use the Department of Labor's overtime pay calculator to estimate how much overtime pay you may earn. Learn more about overtime pay from the Department of Labor.