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Overtime Deductions Set to Change Paychecks by 2026

4/2/2026

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Story summary
  • Bessent discussed an overtime deduction at a Long Island business roundtable.
  • The measure applies to compensation under the Fair Labor Standards Act.
  • In 2023, about 98 million workers were overtime-eligible, yet few received it regularly.
  • Starting January 2026, paycheck withholdings will show overtime deductions and benefits sooner.
  • The deduction expires after 2028, with its future depending on taxpayer behavior and costs.