Workforce News 2026August21

Temporary Protected Status for El Salvado Ends September 9, 2026:

Employment authorization for eligible Salvadoran TPS holders will end September 9th per USCIS, absent new litigation or a redesignation. USCIS has automatically extended certain expired TPS-based employment authorization documents through that date and issued related Form I-9 records, and prepare for timely reverification and potential workforce disruptions. For details see the full article here.

New Guidance from IRS on No Tax on Overtime.

Last week, the Internal revenue Service issued updated FAQs on the No Tax on Overtime provision under HR 1, which added a new tax deduction for qualified overtime compensation. The deduction allows individuals to deduct up to $12,500 of qualified overtime pay annually ($25,000 in the case of a joint return) but may be reduced if a taxpayer's modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). Developed in coordination with the Department of Labor and Office of Personnel Management, the updated FAQs replace previous FAQs issued in January 2026 and provide more extensive guidance on overtime eligibility and exemptions under the Fair Labor Standards Act, reporting qualified overtime compensation, and federal income tax withholdings from wages. The FAQs also include a guidance for employers on calculating qualified overtime compensation to be paid to an employee for purposes of the deduction. This includes instructions for alternative methods of computation are used to compute overtime, which may apply to employees of certain residential care facilities.

Here is your weekly Workforce Weekly Recap