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Fact check: Is overtime also calculated after 8 hours in a single day under the one big beautiful bill??

Checked on September 8, 2025

1. Summary of the results

Based on the analyses provided, the One Big Beautiful Bill Act does not change how overtime is calculated - it only affects the tax treatment of overtime pay. The sources consistently indicate that overtime calculation remains governed by the Fair Labor Standards Act (FLSA), which requires overtime pay for work beyond 40 hours in a workweek, not after 8 hours in a single day [1] [2].

The Act's primary innovation is creating a tax deduction for qualified overtime compensation - specifically allowing individuals to deduct up to $12,500 of overtime pay from their taxable income [3]. However, this deduction only applies to overtime pay that is required under Section 7 of the federal FLSA [4]. Crucially, overtime pay after 8 hours of work in a day is not required by Section 7 of the FLSA, which means it would not qualify for the tax deduction [5].

2. Missing context/alternative viewpoints

The original question lacks important context about federal versus state overtime laws. While federal law (FLSA) only requires overtime after 40 hours per week, several states have daily overtime requirements that mandate overtime pay after 8 hours in a single day. The analyses suggest that only federally-mandated overtime qualifies for the tax deduction under the One Big Beautiful Bill Act [5].

Restaurant employers and employees appear to be particularly affected by these changes, as the Act also includes provisions for tax deductions on tip income [6]. This suggests the legislation may disproportionately benefit certain industries where both tipped wages and overtime are common.

The Act also includes 68 specific job categories that are eligible for the overtime tax write-off, indicating that not all workers may benefit equally from this provision [7]. This selective application could create disparities between different types of workers.

3. Potential misinformation/bias in the original statement

The original question contains a fundamental misunderstanding about what the One Big Beautiful Bill Act actually does. The question implies that the Act changes how overtime is calculated, when in reality it only changes how overtime is taxed [4] [3].

The phrase "one big beautiful bill" appears to be politically charged language that may reflect partisan framing rather than neutral policy discussion. The question assumes the Act establishes new overtime calculation rules, when the analyses clearly show that overtime calculation remains unchanged and continues to follow existing FLSA guidelines [1] [2].

Additionally, the question's focus on daily overtime (8 hours per day) versus weekly overtime (40 hours per week) suggests confusion about federal versus state labor laws, which could lead to misunderstanding about which workers actually benefit from the tax provisions.

Want to dive deeper?
What are the overtime pay rules under the one big beautiful bill?
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Are there any exemptions to overtime pay under the one big beautiful bill?
How does the one big beautiful bill compare to existing labor laws on overtime pay?
What are the penalties for violating overtime pay rules under the one big beautiful bill?