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    • LABOR—UNFAIR LABOR PRACTICES—D. Nev.: Court declines casino’s request for injunction to halt ‘unconstitutional’ NLRB proceedings
    • AGENCY NEWS—EEOC, NLRB, and other agencies announce closure during appropriations lapse
    • DISCRIMINATION—RACE—E.D. Mich.: Security guard fired for sleeping on duty will get trial on bias claims
    • DISCRIMINATION—RACE—M.D. Ga.: Black employee, fired under hair height policy, cannot advance race-based claims
    • DISCRIMINATION—SEX—M.D. Pa.: Fired prison employee advances claims of retaliation, discrimination based on sexual orientation
    • DOL NEWS—WHD issues opinion letter on FMLA leave calculations involving voluntary hours, fixed ‘Pitman Schedules,’ and mandatory overtime
    • EEOC NEWS—New suits target bias in hiring and leave, as well as harassment
    • EMPLOYEE LEAVE—E.D.N.Y.: Termination letter, sent to employee at the end of her maternity leave, bolstered FMLA claims
    • EXPERT INSIGHTS—California lawmakers send ‘Workplace Know Your Rights Act’ bill to governor
    • EXPERT INSIGHTS—What does the government shutdown mean for employers? Answers to your top questions
    • FEDERAL REGULATIONS—DOL has issued interim final rule relating to methodology for determining the hourly AEWRs for non-range occupations
    • LITIGATION NEWS, TRENDS—Court concludes that EO purporting to eliminate collective bargaining rights of suing federal employees is unlawful as applied
    • VITAL BRIEFING—“No Tax on Overtime” deduction included in new draft form released by IRS, but questions remain about taxpayer eligibility
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    Labor & Employment Law Daily Wrap Up, VITAL BRIEFING—“No Tax on Overtime” deduction included in new draft form released by IRS, but questions remain about taxpayer eligibility, (Oct 2, 2025)

    By Anne H. Gibson, J.D., LL.M.

    The limited timeframe of the new deduction means this provision is likely to be revisited in the near future.

    The “No Tax on Overtime” provision, one of several campaign promises from the 2024 presidential election that enjoyed bipartisa ...

    By Anne H. Gibson, J.D., LL.M.

    The limited timeframe of the new deduction means this provision is likely to be revisited in the near future.

    The “No Tax on Overtime” provision, one of several campaign promises from the 2024 presidential election that enjoyed bipartisan popular and political support, became law as part of the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21). It provides a temporary deduction for “qualified overtime compensation,” capped at $12,500 for individuals ($25,000 for joint filers) and is available for tax years 2025 to 2028. A recent draft form for 2025, new Schedule 1-A for Form 1040, sheds some light on how this deduction will be claimed by taxpayers. However, some aspects of the deduction, including exactly who can claim it, will require clarification from future guidance.

    In this Vital Briefing, Wolters Kluwer Senior Legal Analyst Anne Gibson discusses the details of the “No Tax on Overtime” deduction, including the eligibility rules and reporting obligations for employers.

    MainStory: Overtime FederalLegislation IndustryNewsTrends EconomicNews

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