Social media influencer Overtime Megan, known for her basketball content and vibrant TikTok presence, revealed she has split from her boyfriend, Kyle Forgeard, co-founder of the Nelk Boys, after ... Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. Under the One, Big, Beautiful Bill, if you receive qualified overtime compensation, you may deduct the pay that exceeds your regular rate of pay.

Understanding the Context

For 2025, employers aren’t required to report qualified overtime compensation separately on Forms W-2, 1099-NEC, and 1099-MISC. Eligible workers can deduct up to $12,500 of overtime pay earned during the year (up to $25,000 for married couples filing a joint return). But if your income is more than a certain amount, the deduction is gradually phased out – potentially to $0. Your employer must pay you at the overtime rate for the extra hours you worked.

Key Insights

Use the Department of Labor’s overtime pay calculator to estimate how much overtime pay you may earn. Explore Overtime’s official shop for sports culture streetwear, training apparel, and exclusive gear. Get early access to drops, restocks, and deals on shorts, hoodies, tees, and more. IR-2025-114, Nov. 21, 2025 — The Department of the Treasury and the Internal Revenue Service today issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for tax year 2025.

Final Thoughts

There are, however, a number of exemptions from the overtime law. An "exemption" means that the overtime law does not apply to a particular classification of employees. There are also a number of exceptions to the general overtime law stated above.