The “Big Beautiful Bill”: A Win for Workers or a Wolf in Sheep’s Clothing?

Jun 30, 2025

By: Bob DeRose, Wage and Hour Attorney for Employees

As someone who has spent years advocating for workers’ rights, I’ve seen firsthand how small changes in tax or labor law can have massive ripple effects on working families. The recently proposed “Big Beautiful Bill,” which seeks to exempt overtime wages and tips from federal income tax, is one of those changes that sounds great on the surface—but deserves a closer look.

The Good: More Money in Workers’ Pockets

There’s no denying the immediate appeal:

Tipped workers—like restaurant servers—could save thousands annually.
Overtime earners—like healthcare and logistics workers—would see a boost in take-home pay.
For many, this could mean finally catching up on bills, saving for emergencies, or just breathing a little easier.

In fact, some estimates suggest a single mother working overtime could save over $2,000[1] a year. That’s not pocket change—it’s rent, groceries, or a child’s school supplies.

⚠️ The Catch: What’s the Real Cost?

But here’s where I urge caution. As with many sweeping reforms, the devil is in the details:

Overwork Incentives: The bill could unintentionally pressure workers to take on more hours, even at the expense of their health or family time.
Wage Suppression: Employers might cut base wages, knowing workers will rely on untaxed income to make up the difference.
Loopholes for the Wealthy: High earners could exploit it by restructuring compensation to appear as “overtime.”
Massive Revenue Loss: The federal government could lose up to $866 billion over 10 years.[2]

⚖️ So, What Should Workers Think?

As an advocate for employees, I believe in policies that empower workers without exposing them to new risks. While the “Big Beautiful Bill” offers short-term gains, it may also:

Undermine wage stability
Encourage burnout
Shift tax burdens in ways that hurt the very people it claims to help

[1] Whitehouse.gov.

[2] The estimates were from the Tax Foundation and the Budget Lab at Yale. https://www.pgpf.org/article/heres-how-no-tax-on-overtime-would-affect-federal-revenues-and-tax-fairness/

Ohio is doubling down, House Bill 209, would exempt tips from state and local income taxes.

🗣️ Final Thoughts

If you’re a worker, stay informed. If you’re an employer, don’t use this bill as an excuse to cut corners. And if you’re a policymaker—listen to the people on the ground.

This bill may be “beautiful” in name, but beauty, as we know, is only skin deep.

Bob DeRose, Partner at Barkan Meizlish DeRose Cox, LLP

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