THE OVERTIME BUT NOT OVERTAXED ACT.

House Bill 1822, known as the "Overtime but not Overtaxed Act," aimed to exempt compensation earned from overtime hours from the state of Arkansas's income tax. The bill defined overtime as hours worked exceeding 40 in a workweek that are required to be compensated under the Fair Labor Standards Act. This measure would have directly affected Arkansas residents who receive overtime pay, reducing the amount of state income tax they would owe on those specific earnings. Had it passed, the exemption would have applied to tax years beginning on or after January 1, 2026.