FedEx overtime not qualified?

[rtsietsema]

I have a client who works for FedEx ,and they do put in overtime at times and it shows on the pay stubs, but not on the W-2 or final pay summary. FedEx put out a letter explaining that overtime paid by FedEx does not qualify for deduction under the OBBBA. (The letter is available by searching online) It appears that FedEx does not pay overtime under the Fair Labor Standards Act (FLSA), but under Railroad Labor Act (FLA) or State requirements. Does anyone have more insight on this issue? I’d like to be sure before filing an incorrect return.

Thank you.

[New York Enrolled Agent]

Payment under FLSA is required. Congress knew the limitations when the bill passed. Sen Cantwell of Washington State offered an amendment to correct this but it was not taken up by Senate leadership.

in situations such as this, the lyrics sung by Steve Perry of Journey come to mind. Some will win, some will lose, some were born to sing the blues

[TaxGuyBill]

FedEx put out a letter explaining that overtime paid by FedEx does not qualify for deduction under the OBBBA. (The letter is available by searching online) It appears that FedEx does not pay overtime under the Fair Labor Standards Act (FLSA), but under Railroad Labor Act (FLA) .

Did your client receive that letter or are you just looking at random web searches?

FedEx is divided into separate companies.

If your client works for FedEx Express, that is under the RLA, not the FLSA, so that overtime does not count. If your client works for FedEx Ground, that is generally covered under the FLSA and that overtime may qualify.

[rtsietsema]

Thanks for the responses. Yes, she received the letter explaining the overtime did not qualify.

I’ve filed the return, and of course can amend if needed.