An employee's overtime pay rate must be at least 1.5 times their standard wage. For example, an employee earning $15 per hour would be paid $22.50 per hour for the overtime hours worked.

House Republicans recently drafted the "One, Big, Beautiful Bill" that incorporates several of President Trump's key campaign ...

The proposed overtime tax break would function similarly to the tip income deduction. Overtime wages would still be subject ...

It’s a temporary full deduction on the overtime pay you receive, Nexstar’s The Hill explains. The deduction is set to end after 2027, unless it receives an extension before then.

Qualifying for overtime pay does, however, vary by industry. For many, overtime may begin to accrue after 40 hours of work. For others, that threshold may be higher.

According to the House Ways and Means Committee, the move removes income taxes on the overtime pay premium for over 80 million hourly workers. This isn’t a permanent move, though.

Qualifying for overtime pay does, however, vary by industry. For many, overtime may begin to accrue after 40 hours of work. For others, that threshold may be higher.