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The federal overtime provisions are contained in the fair labor standards act The irs released new guidance for no tax on tips and overtime deductions under the one big beautiful bill act Compensatory time off in place of payment for overtime is not legal in the private sector.
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. New dol overtime rules expand eligibility Learn how salary thresholds, duties tests, and reclassification affect workers’ overtime rights. In this article, we define overtime pay, explain how it functions under federal law and state laws, review different types of overtime work, and provide steps to calculate it using your regular rate of pay or hourly rate.
The one, big, beautiful bill act (obbba), enacted on july 3, 2025, created a new federal tax deduction on overtime pay that applies retroactively to the 2025 tax year Workers can deduct up to $12,500 per year in qualified overtime earnings on their 2025 tax return.
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