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HR 405 United States House · 119th Congress

Keep Every Extra Penny Act of 2025

This bill would change federal tax rules by excluding overtime pay from taxable income. Specifically, it adds a new section to the tax code stating that overtime compensation required under the Fair Labor Standards Act (FLSA) is not included in gross income for tax purposes. This directly affects hourly workers who earn overtime pay under FLSA protections, meaning they would keep more of their overtime earnings without it being taxed as part of their regular income. The change applies to overtime received after the bill's enactment date.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income for FLSA-protected hourly workers, providing direct tax relief to middle/lower income earners under tax code changes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from taxable income under FLSA, increasing take-home pay for hourly workers and strengthening wage protections per Labor & Employment policy focus.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
President
Introduced Jan 15, 2025 Last action Jan 15, 2025
Floor votes

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Full legislative history

Actions timeline

Total actions
2
Key actions
0
Committee
1
Jan 15, 2025
Committee
Referred to the House Committee on Ways and Means.
lower
Jan 15, 2025
Introduced
Introduced in House
lower
1 primary · 1 co-sponsor

Sponsors

Role
Legislator
Party
State
District
P
Photo of Russ Fulcher
Russ Fulcher
RRepublican
ID
1
Co
Photo of Michael A. Rulli
Michael A. Rulli
RRepublican
OH
6