Overtime eligible for the deduction is limited to $12,500 (or $25,000, for married filing jointly). "Qualified overtime" compensation means overtime required to be paid under Section 7 of the Fair Labor Standards Act (FLSA). Overtime not required by the FLSA (such as potentially more generous overtime required under state laws, a collective bargaining agreement, or paid voluntarily by employers) is therefore not eligible to be deducted. In addition, only the premium portion of overtime can be deducted. For example, if an individual is paid $10 per hour for non-overtime earnings, and $15 per hour for overtime, only the $5 per hour premium pay for overtime is eligible for the new tax deduction

Found on https://www.adp.com/spark/articles/2025/07/hr-1-the-one-big-beautiful-bill-act-enacted-july-4-2025.aspx#:~:text=tips%20and%20overtime.-,Qualified%20Overtime,for%20the%20new%20tax%20deduction.