S. 4310

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4310 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4310

To amend the Internal Revenue Code of 1986 to allow a deduction for 
certain overtime compensation.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 15 (legislative day, April 14), 2026

Mr. Justice introduced the following bill; which was read twice and 
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to allow a deduction for 
certain overtime compensation.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``No Tax on Overtime for All Workers 
Act''.

SEC. 2. DEDUCTION FOR CERTAIN OVERTIME COMPENSATION.

(a) In General.--Section 225(c)(1) of the Internal Revenue Code of 
1986 is amended to read as follows:
``(1) In general.--For purposes of this section, the term 
`qualified overtime compensation' means--
``(A) any overtime compensation paid to an 
individual required under section 7 of the Fair Labor 
Standards Act of 1938 that is in excess of the regular 
rate (as used in such section) at which such individual 
is employed, or
``(B) any compensation paid to an individual that 
is in excess of the regular rate at which such 
individual is employed if--
``(i) such compensation is paid for work 
for a single employer pursuant to an agreement 
between the employee (or labor organization 
representing such employee) and employer 
entered into before the performance of the 
work, and
``(ii) either--
``(I) such work is in excess of a 
standard number of hours of such work 
for a specified period of time, and 
such agreement specifies that such 
standard number of hours for a 
specified period of time is not less 
than 40 hours for a 7-day work period, 
or
``(II) if the employee (including 
any crewmember or flight crewmember, or 
rail operating craft employee) and 
employer referred to in clause (i) are 
both covered by the Railway Labor Act, 
such work is beyond scheduled or 
anticipated hours on duty or for hours 
on duty that exceed a maximum number of 
hours with respect to a specified 
period of time (as determined pursuant 
to such agreement).''.
(b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.
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