OBBB Overtime Provisions Add New Reporting Obligations for Employers

October 2, 2025

The “One Big Beautiful Bill Act” (OBBB), signed into law by President Trump on July 4, 2025, introduces new federal income tax deductions for qualified overtime compensation. These provisions do not alter existing wage and hour requirements under the Fair Labor Standards Act (FLSA), but they do provide tax advantages for eligible employees while adding new reporting obligations for employers.

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