• Login
    • Advanced search
    • Title
    • Channel
    • Module
  • Home
  • Client Solutions
    • Digital Transformation
    • Energy Transition
    • Supply Chains
    • Sustainability and ESG
    • Workforce Redesign
  • Sectors
    • Consumer Goods & Retail
    • Energy, Mining & Infrastructure
    • Financial Institutions
    • Healthcare & Life Sciences
    • Industrials, Manufacturing & Transportation
    • Technology
  • Learning Resources
    • Podcasts
    • Video Chats
    • Webinars
  • Area of Law
    • Antitrust & Competition
    • Artificial Intelligence
    • Banking & Finance
    • Capital Markets
    • Cybersecurity & Data Privacy
    • Data & Technology
    • Dispute Resolution
    • Employment & Compensation
    • Environment & Climate Change
    • Financial Services Regulatory
    • Inclusion, Diversity & Equity
    • Intellectual Property
    • International Commercial & Trade
    • Investigations, Compliance & Ethics
    • Mergers & Acquisitions
    • Pensions
    • Private Equity
    • Projects
    • Real Estate
    • Restructuring & Insolvency
    • Tax
  • Location
    • International

    • International
    • Asia Pacific

    • Australia
    • China
    • Hong Kong
    • Indonesia
    • Japan
    • Malaysia
    • South Korea (Korea, Republic of)
    • Singapore
    • Taipei
    • Thailand
    • Philippines
    • Vietnam
    • EMEA

    • Austria
    • Bahrain
    • Belgium
    • Czech Republic
    • Egypt
    • EU
    • France
    • Germany
    • Hungary
    • Italy
    • Kazakhstan
    • Luxembourg
    • Morocco
    • Netherlands
    • Poland
    • Portugal
    • Qatar
    • Russian Federation
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Türkiye
    • Ukraine
    • United Arab Emirates
    • United Kingdom
    • North America

    • Canada
    • United States
    • Latin America

    • Argentina
    • Brazil
    • Colombia
    • Chile
    • Mexico
    • Peru
    • Venezuela
Baker McKenzie InsightPlus Home
      • Title
      • Channel
      • Module
    • Hit ENTER to search in content
    • Advanced search
    • Login
  • Home
  • Client Solutions
    • Digital Transformation
    • Energy Transition
    • Supply Chains
    • Sustainability and ESG
    • Workforce Redesign
  • Sectors
    • Consumer Goods & Retail
    • Energy, Mining & Infrastructure
    • Financial Institutions
    • Healthcare & Life Sciences
    • Industrials, Manufacturing & Transportation
    • Technology
  • Learning Resources
    • Podcasts
    • Video Chats
    • Webinars
  • Area of Law
    • Antitrust & Competition
    • Artificial Intelligence
    • Banking & Finance
    • Capital Markets
    • Cybersecurity & Data Privacy
    • Data & Technology
    • Dispute Resolution
    • Employment & Compensation
    • Environment & Climate Change
    • Financial Services Regulatory
    • Inclusion, Diversity & Equity
    • Intellectual Property
    • International Commercial & Trade
    • Investigations, Compliance & Ethics
    • Mergers & Acquisitions
    • Pensions
    • Private Equity
    • Projects
    • Real Estate
    • Restructuring & Insolvency
    • Tax
  • Location
    • International

    • International
    • Asia Pacific

    • Australia
    • China
    • Hong Kong
    • Indonesia
    • Japan
    • Malaysia
    • South Korea (Korea, Republic of)
    • Singapore
    • Taipei
    • Thailand
    • Philippines
    • Vietnam
    • EMEA

    • Austria
    • Bahrain
    • Belgium
    • Czech Republic
    • Egypt
    • EU
    • France
    • Germany
    • Hungary
    • Italy
    • Kazakhstan
    • Luxembourg
    • Morocco
    • Netherlands
    • Poland
    • Portugal
    • Qatar
    • Russian Federation
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Türkiye
    • Ukraine
    • United Arab Emirates
    • United Kingdom
    • North America

    • Canada
    • United States
    • Latin America

    • Argentina
    • Brazil
    • Colombia
    • Chile
    • Mexico
    • Peru
    • Venezuela
  1. Investigations, Compliance & Ethics
  2. United States: No tax on tips or overtime in the OBBBA — What employers need to know (Video Chat)

United States: No tax on tips or overtime in the OBBBA — What employers need to know (Video Chat)

15 Jul 2025    1 minute read
    • Share by email
    • Share on
    • Twitter
    • LinkedIn
    • Facebook
    • Google plus
    • Get link
    • Get QR Code
    • Download
    • Print
Video Chat Employment Labor The Employer Rapport Video Series EC Featured Content

In brief

On July 4, 2025, President Trump signed the 'One Big Beautiful Bill Act' (OBBBA) into law, including provisions reducing federal income tax on qualified tips and overtime compensation.

For employers, the new law raises a host of practical questions:

  • What do employers need to track and report?
  • How will payroll systems need to adapt?
  • What guidance can we expect as we move forward?
  • How might state tax rules interact with these federal changes?

Contents

In this video chat, our Employment & Compensation and Tax partners unpack this significant development in federal tax policy. Tune in to discover what these changes may mean for your operations, and for practical tips to navigate the new law.

Click on the image below to watch the video chat.

No tax on tips or overtime in the OBBBA

Follow the latest developments affecting US and multinational employers by subscribing to The Employer Report blog. Our video chats from The Employer Rapport series are linked on the right sidebar of the blog, providing timely, conversational updates for multinational employers.

Subscribe here to receive these updates and the latest thought leadership directly to your inbox.

Related episodes

You may access all related episodes from The Employer Rapport here.

Contact Information
Michael E. Brewer
Partner
San Francisco
Read my Bio
michael.brewer@bakermckenzie.com
Robin Samuel
Partner
Los Angeles
Read my Bio
robin.samuel@bakermckenzie.com
Anne G. Batter
Partner
Washington, DC
Read my Bio
anne.batter@bakermckenzie.com
Ligeia Donis
Partner
Washington, DC
Read my Bio
ligeia.donis@bakermckenzie.com

Copyright © 2025 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.

Delete Comment ?

Are you sure want to delete comment ?

Get link
Embed
Share by email
Get QR Code

Scan this QR Code to share this content

  •  
  •  
  •  
HighQ
Copyright Baker McKenzie 2025 | Disclaimers | Supplemental Privacy Statement