No Tax on Overtime for All Workers Act

# No Tax on Overtime for All Workers Act (HR 4740) - Summary **What the Bill Would Do:** This bill would exempt overtime pay from federal income taxes. Currently, when workers earn overtime pay, that income is subject to federal income tax like regular wages. If passed, the overtime portion of paychecks would not be taxed by the federal government, potentially putting more money in workers' pockets. **Who It Affects:** This proposal would benefit any worker who receives overtime compensation, primarily affecting hourly and salaried employees who regularly work more than 40 hours per week.

Industries like manufacturing, healthcare, retail, and transportation—where overtime is common—would likely see the most impact. **Current Status:** The bill was introduced by Rep. Emilia Strong Sykes (D-OH) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full House. At this stage, the bill remains in the early phases of the legislative process and would need to pass committee review before advancing further.