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Since yesterday, overtime pay taxes have dominated headlines, driven by a proposal from the current administration to exempt overtime earnings from federal income tax. While the idea awaits Congressional approval and remains speculative as of February 26, 2025, its potential impact merits attention from HR professionals.
Beyond the paycheck, this overtime tax policy could reshape workforce planning, employee morale, employee incentives and organizational strategies. If you’re wondering what it means in the workplace. Here’s what HR leaders need to consider if this tax exemption on overtime pay for work takes hold
in 2025. Overtime pay taxes, a boost for hourly