AN ACT EXEMPTING OVERTIME INCOME FROM THE PERSONAL INCOME TAX.

SB 651 would exempt overtime pay earned by employees from the state's personal income tax. This means workers would no longer pay income tax on the extra hours they work beyond their regular schedule. The bill directly affects hourly workers who receive overtime compensation, as only the overtime portion of their earnings would be tax-free under this change. It modifies existing tax law to exclude overtime income from taxable wages, leaving regular pay subject to standard income tax rates. The policy change focuses solely on the tax treatment of overtime earnings, not on other aspects of employment or compensation.