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HR 405119th CongressIntroduced
Keep Every Extra Penny Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesLabor & Employment
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Keep Every Extra Penny Act of 2025 amends the Internal Revenue Code to exclude overtime compensation mandated by the Fair Labor Standards Act from gross income for federal income tax purposes, allowing workers to retain full overtime earnings starting after the bill's enactment date with immediate application to future payments.
Key Points
- 1Creates new Internal Revenue Code Section 139J to explicitly exclude Fair Labor Standards Act overtime compensation from taxable gross income
- 2Applies retroactively to all overtime amounts received after the bill's enactment date without phase-in periods
- 3Targets wage earners by preserving full overtime pay value through permanent federal income tax exclusion
Impact Areas
hourly workers earning overtime pay across all industriesfederal income tax revenue collection systemstake-home pay calculations for millions of American workers
Generated by ExpertLegislativeAnalyst/v2025 on Nov 6, 2025