A bipartisan bill to expand tax cuts on overtime has been introduced in the U.S. Senate.
Sens. Jim Justice (R-WV) and Maria Cantwell (D-WA) have filed the No Tax on Overtime for All Workers Act (S. 4310). The bill serves as companion legislation to the House version introduced by Reps. Nicole Malliotakis (R-NY) and Emilia Sykes (D-OH).
In 2025, Congress passed reconciliation legislation that implemented new tax changes, including a federal deduction on overtime pay. While many fire fighters saw increased returns this tax season thanks to the new law, some weren’t covered under the provision.
Under the Fair Labor Standards Act (FLSA), fire fighters have a standardized 53-hour workweek threshold before overtime applies. The current tax provisions allow deductions only on hours worked beyond that threshold.
This bill ensures IAFF members – and workers across the country – can keep more of their hard-earned money,. The IAFF is proud to endorse this bipartisan legislation and looks forward to seeing it become law.
General President Edward Kelly
However, due to collective bargaining agreements, state and local laws, and other factors, some fire fighters operate under different schedules and did not receive the full benefit.
S. 4310 would expand the definition of qualified overtime to include workers outside standard FLSA thresholds and those covered by alternative schedules under collective bargaining agreements.
That would put more money back in the pockets of fire fighters and their families.
“This bill ensures IAFF members – and workers across the country – can keep more of their hard-earned money,” General President Edward Kelly said. “The IAFF is proud to endorse this bipartisan legislation and looks forward to seeing it become law.”
In a statement announcing the bill, Justice highlighted the impact this legislation would have on workers in West Virginia and nationwide.
It’s time to expand no-tax-on-overtime to all workers, including some of the hardest-working folks I know. Our fire fighters and first responders, our pilots and truck drivers, our tradesmen and women – they all deserve to deduct their overtime wages and keep more of their hard-earned money.
Sen. Jim Justice (R-WV)
“It’s time to expand no-tax-on-overtime to all workers, including some of the hardest-working folks I know,” he said. “Our fire fighters and first responders, our pilots and truck drivers, our tradesmen and women – they all deserve to deduct their overtime wages and keep more of their hard-earned money.”
H.R. 1 provided a new federal tax deduction of up to $12,500 (or $25,000 for joint filers) on overtime pay for individuals earning up to $275,000 (or $550,000 for couples). The IAFF endorsed the provision last year, urging Congress to support fire fighters and other workers who regularly work overtime hours. .
The union will continue advocating to expand the tax cut to ensure all members benefit.
