The new federal “no tax on overtime” law may not mean what you think it does.

To start with, all of your overtime pay is not included.

“No tax on overtime” is a highly promoted part of this year's massive budget plan that President Donald Trump calls the “One Big Beautiful Bill” — but it applies only to the premium portion of overtime pay.

“When we talk about overtime, we have to be very careful exactly what we're talking about,” said Shannon Pierce, an employment attorney at Fennemore law office in Reno.

She gave the example of someone who normally is paid $20 an hour and gets time-and-a-half when working overtime.

“Technically, the overtime rate is $30 an hour — but $20 of it is regular pay and then the remaining $10 is the premium for the overtime,” Pierce said.

Only that $10 in t

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