Fact check: Is overtime calculated after 40 hours under the big beautiful bill

1. Summary of the results

Based on the analyses provided, overtime calculation under the One Big Beautiful Bill Act of 2025 remains tied to the 40-hour threshold established by the Fair Labor Standards Act (FLSA). The Act does not change the fundamental definition of overtime work.

The key findings include:

• The One Big Beautiful Bill Act provides tax deductions for overtime wages but does not alter overtime calculation methods ^{[1] [2]}
• Overtime is defined as "pay in excess of the regular rate of pay under the Fair Labor Standards Act", which maintains the traditional 40-hour calculation standard ^[1]
• The IRS confirms that qualified overtime compensation includes the premium portion of time-and-a-half pay required by FLSA, reinforcing the 40-hour threshold ^[3]
• The tax benefits apply to overtime wages up to $12,500 for single filers and $25,000 for married filing jointly, effective for tax years 2025 through 2028 ^[4]

2. Missing context/alternative viewpoints

The original question lacks several important contextual elements:

• The One Big Beautiful Bill Act is primarily a tax reform measure, not a labor law reform - it creates tax deductions for overtime pay rather than changing how overtime is calculated ^[1]
• The Act specifically benefits restaurant and hospitality workers who frequently work overtime hours, as these industries would see significant tax savings from the new deductions ^[2]
• Employers in tip-heavy industries like restaurants stand to benefit from improved employee retention and satisfaction due to the tax advantages their workers receive ^[2]
• The legislation includes provisions for both tipped employees and overtime workers, creating a comprehensive approach to reducing tax burden on service industry workers ^{[2] [4]}
• Recent federal court decisions have struck down Department of Labor overtime rules, creating uncertainty around salary thresholds for overtime exemptions, though this doesn't affect the 40-hour calculation standard ^{[5] [6]}

3. Potential misinformation/bias in the original statement

The original question contains an implicit assumption that may be misleading:

• The phrasing suggests the "big beautiful bill" might have changed overtime calculation methods, when in fact the legislation only addresses tax treatment of overtime pay, not its calculation ^{[1] [2]}
• The question lacks specificity about what aspect of overtime calculation is being questioned - whether it's the hours threshold, rate calculation, or tax treatment
• There's no acknowledgment that overtime calculation has remained consistent under FLSA standards regardless of this new tax legislation ^{[3] [1]}

The analyses consistently show that overtime continues to be calculated after 40 hours of work per week, as this standard is embedded in the Fair Labor Standards Act, which the One Big Beautiful Bill Act references but does not modify.