No Tax on Overtime for All Workers Act

This bill creates a federal tax deduction for certain overtime pay, making it non-taxable for eligible workers. It directly affects employees who earn overtime under the Fair Labor Standards Act (FLSA) or as specified in binding collective bargaining agreements, specifically pay exceeding 40 hours per workweek at 1.5x their regular rate. The key provision amends tax law to exclude this defined "qualified overtime compensation" from taxable income, removing federal income tax liability for those specific overtime earnings. The change applies to tax years beginning after December 31, 2024.