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Overtime Pay Tax Exemption: Keeping Every Extra Penny Earned.

This bill proposes to exclude mandatory overtime compensation from federal gross income calculations for tax purposes. Employees receiving overtime pay under the Fair Labor Standards Act will no longer pay income tax on those specific earnings. Consequently, individuals working extra hours will see an increase in their net take-home pay from overtime work.
Key points
Overtime wages will be exempt from federal income tax.
Workers will keep more of the money earned from working extra hours, boosting net income.
The exemption applies to overtime compensation required by the Fair Labor Standards Act of 1938.
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Expired
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Additional Information
Print number: 118_HR_8938
Sponsor: Rep. Fulcher, Russ [R-ID-1]
Process start date: 2024-07-08
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Keep Every Extra Penny Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8938.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-07-08.

What are the main provisions?

Key points include:

  • Overtime wages will be exempt from federal income tax.
  • Workers will keep more of the money earned from working extra hours, boosting net income.
  • The exemption applies to overtime compensation required by the Fair Labor Standards Act of 1938.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Fulcher, Russ [R-ID-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Labor