How Will Employers Be Impacted by the Big Beautiful Bill? A Recap of Key Workplace Provisions in The New Federal Budget
Don’t have the energy to slog through the 1,127 (or so) pages of the legislative text, amendments, and explanatory materials that comprise the final version of the “Big Beautiful Bill” to see how it impacts labor and employment law? Don’t worry – the Government Affairs team at Fisher Phillips has your back. Here’s an overview of the ways that the workplace will be impacted by the final budget bill signed by President Trump on July 4. No Federal Tax on Overtime and Tips Tipped and hourly workers will be able to deduct significant portions of their tip and overtime income from federal taxes, potentially making hospitality and similar jobs more attractive. Details Individuals must earn $150,000 or less in 2025 to eligible; for couples, the combined income limit is $300,000 (this threshold will be adjusted for inflation in future years) For tip deductions , employees must work in occupations where receiving tips is customary, such as servers, bartenders, hotel staff, hairs...