The passage of the One Big Beautiful Bill Act (OBBBA) marks more than a technical payroll adjustment — it introduces a structural reporting shift that public sector employers and pension trustees should evaluate carefully. Beginning in 2026, the new “tax-free overtime” provision will require qualified overtime to be separately identified and reported, raising important considerations around compliance controls, payroll system readiness, and fiduciary oversight. In this article, Timothy Gavin, CPA, a Principal in Financial Services and Payroll Services at Lauterbach & Amen, explores the implications for governing boards and individual taxpayers alike, including the nuanced overtime thresholds applicable to public safety personnel under FLSA Section 7(k).