The query concerns whether a legislative measure eliminating taxes on overtime earnings was enacted into law during the Trump administration. Overtime pay is compensation provided to employees for hours worked exceeding a standard workweek, typically 40 hours. Federal law mandates employers covered by the Fair Labor Standards Act (FLSA) to pay overtime at a rate of not less than one and one-half times the regular rate of pay.
The impact of such a law would primarily affect wage earners who regularly work overtime, increasing their take-home pay. Historically, there have been various proposals to alter the tax treatment of overtime earnings, often with the stated goal of incentivizing work or providing financial relief to working families. Understanding the legislative history and economic implications of such measures is crucial for assessing their potential benefits and drawbacks.
