OBBBA

New OBBBA Overtime Rules: IRS Grants Penalty Relief for Employers in 2025 and Provides Transition-Year Guide to Individual Workers Seeking to Claim Overtime Deductions

By Kelly Tuffo on December 2, 2025

Posted in FLSA, Labor Relations, OBBBA, Wage and Hour, Workplace Policies

Since our original post detailing the tracking and reporting requirements imposed by the One Big Beautiful Bill Act (“OBBBA”) for federal tax deduction of qualified overtime compensation (i.e., Fair Labor Standards Act (FLSA) overtime), the IRS has announced significant guidance for 2025 reporting.

For Tax Year 2025, Employers Are Not Required to Separately Report Qualified…

Overtime, Unbundled: Complying with the One Big Beautiful Bill Act’s Overtime Tracking Requirements

By Kelly Tuffo on September 11, 2025

Posted in Employment

The One Big Beautiful Bill Act (“OBBBA”), approved by Congress and signed into law by President Trump on July 4, 2025, created a new, federal overtime tax deduction that employees can claim on their federal tax returns. The tax deduction applies retroactively to the beginning of 2025 and will terminate on December 31, 2028, unless…