Manufacturing is one of the highest-overtime sectors in the economy — mandatory overtime is written into plant schedules, and production surges routinely push 50–60 hour weeks. A line worker at $28/hour averaging 10 overtime hours weekly earns over $20,000 a year in time-and-a-half wages. Under the 2025 law, the premium third of that — roughly $6,700 — is deductible.
Plant pay structures muddy the qualified number the same way they muddy every paycheck: shift premiums for 2nd/3rd shift, production bonuses, and attendance incentives all appear alongside overtime. Only the FLSA premium qualifies — but here's the part reviews catch: nondiscretionary bonuses and shift differentials legally increase your FLSA "regular rate," which increases the overtime premium you were owed and can deduct. Payroll systems get this right; tax software never sees it.
Union and non-union W-2 workers qualify identically. Temp and staffing-agency workers qualify against their agency's payroll. The deduction caps at $12,500 ($25,000 joint), phases out above $150,000 ($300,000 joint), and runs through 2028 — so a household with two plant incomes should check both W-2s.