Hunton Employment & Labor Perspectives

The “One Big Beautiful Bill Act” (“OBBBA”) signed on July 4, 2025, enacts the widely-publicized “No Tax on Tips” and “No Tax on Overtime” changes to the tax code. These provisions will decrease tax burdens for many employees, but also present new compliance obligations for employers. These changes are retroactive to January 1, 2025, so employers should be focused on these issues now.