What is “qualified overtime compensation” under the OBBBA?

The OBBBA defines “qualified overtime compensation” as overtime compensation paid to an individual as required under Section 7 of the Fair Labor Standards Act (“FLSA” or the “Act”) that is in excess of the employee’s regular rate.  Two key provisions of this definition are: (1) the overtime compensation must be required by the FLSA; and (2) the deduction only applies to the compensation “that is in excess of the regular rate”—that is, the “half” portion of “time-and-a-half” overtime compensation.