What Employers Need to Know About No Tax on Tips and No Tax on Overtime

On July 4, 2025, President Donald J. Trump signed the “One Big Beautiful Bill Act” into law, creating above-the-line tax deductions for “qualified tips” and “qualified overtime compensation.” In this session, Rob Pritchard, co-chair of Littler’s Wage and Hour Practice Group, and David Jordan, co-chair of Littler’s Hospitality Industry Group, will discuss what employers need to know about these deductions, including:

• Who is entitled to take the deductions?
• What constitutes “qualified tips” or “qualified overtime compensation” eligible for the deductions?
• Are there limits on an employee’s right to take the deductions?
• When do the deductions take effect?
• Will the Act impact an employer’s withholding and reporting obligations?
• How might an employer modify an employee’s current compensation arrangement to take advantage of the deductions?

Time:
10:00 - 11:00 a.m. PT
11:00 a.m. - 12:00 p.m. MT
12:00 - 1:00 p.m. CT
1:00 - 2:00 p.m. ET