Millions Miss Out on Overtime Tax Breaks Under Trump Labor Rules

Roughly 4 million “white collar” workers will lose out on a new tax exemption for overtime pay while Biden-era rules that expanded that pool of eligible employees remain in legal limbo and the Trump administration gears up to replace them.

The tax code change places pressure on the US Labor Department to craft regulations that would widen the impact of one of President Donald Trump’s signature campaign promises, some employment law stakeholders said.

It also could spur new wage-and-hour lawsuits from employees arguing they qualify for overtime under the Fair Labor Standards Act. If they succeed in court—a challenging, ...