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Trump’s budget bill touts ‘no tax on overtime.’ But he just made it harder for millions to earn overtime in the first place

Left 0% Center coverage: 1 sources Right

Washington, D.C., USA

May 26, 2025 3 Negative I'm focusing on career/side hustles

Washington, D.C., USA: President Trump’s budget touts a tax-free overtime perk, which sounds great—until you realize the Department of Labor abandoned a rule expanding overtime eligibility to millions more workers. By dropping the legal defense of that rule, the administration effectively keeps the lower salary cutoff, meaning many employees who would’ve gained time-and-a-half now won’t. Labor advocates call “no tax on OT” meaningless if fewer people ever qualify for that OT in the first place.

What this means for you:

•	Within 2 weeks, verify your exempt or non-exempt status—if you fall just above the old cutoff, check whether your employer has reclassified you.
•	By 1–2 months, consider negotiating a pay bump or exploring roles that remain overtime-eligible—especially if you rely on OT income.
•	If you’re budgeting for major expenses, assume you might lose overtime hours and plan to supplement with side gigs or freelance projects.
•	In the meantime, watch for any state-level rules that might preserve the higher salary cutoff, offering stronger OT protections in certain regions.

Key Entities

• Donald Trump – President proposing “no tax on OT” while weakening actual OT eligibility.
• U.S. Dept. of Labor – Declined to defend the Obama/Biden-era rule raising the salary threshold for overtime.
• Economic Policy Institute – Tracks wage data, criticizing the move as a rollback of worker protections.
• Overtime-eligible workers – Potentially missing out on expanded coverage under the scrapped rule.

Bias Distribution

Left: 100% (1 source)

Center: 0% (0 sources)

Right: 0% (0 sources)

Multi-Perspective Analysis

Left-Leaning View

Criticizes the policy as bait-and-switch, giving with one hand while taking away with the other.

Centrist View

Might parse the economic trade-offs, noting corporate relief vs. worker protections.

Right-Leaning View

Emphasizes less government interference in business payroll decisions, praising a simpler standard.

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