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Defending the Overtime Number: The 2026 W-2 and Employer Wage-and-Hour Exposure

Box 12 Code TT is mandatory on the 2026 W-2 and the transition relief is gone. Learn to isolate the FLSA overtime premium, audit regular-rate errors under privilege, weigh the DOL’s PAID program, and correct the numbers before W-2c obligations and penalties attach.

2026-10-02 14:30:00

Program Details

2026-10-02 14:30:00

Program Details

2026-10-02 14:30:00

Over 1,000+ webinars

2026-10-02 14:30:00

Course Overview

Every Regular-Rate Error Is Now a Tax Reporting Error

2026-10-02 14:30:00

The One Big Beautiful Bill Act created a federal income tax deduction for qualified overtime compensation under IRC § 225, and it made the employer’s payroll math the proof of it. For tax year 2026, qualified overtime must be reported in Box 12 of the W-2 using Code TT. The transition relief that cushioned 2025 reporting under IRS Notice 2025-62 has expired.

Report the wrong figure and penalties attach under IRC §§ 6721 and 6722, per return and per statement. Miscalculating the regular rate and the reported overtime is wrong as well. Employees then file amended returns to repair a deduction worth up to $12,500, or $25,000 jointly. The plaintiffs’ bar is auditing the same math: the $98 million Providence Health verdict shows what per-paycheck errors become in a collective action, and DOL Opinion Letter FLSA2026-2 has closed the space to call a promised bonus discretionary.

Attendees walk out with the work product: methods for isolating the FLSA premium under fluctuating workweek, weighted average, and multi-source pay; a privilege architecture for payroll audits drawn from In re FirstEnergy and Kellogg Brown & Root; the PAID-versus-unilateral-correction decision; and a seven-step remediation sequence that documents the good-faith defense under 29 U.S.C. § 260.

Format

CLE Credit

2h CLE Credits

Level

Intermediate

Length

2

Key topics that will be covered

01
Qualified Overtime Defined
How IRC § 225 and the FLSA premium requirement decide which overtime dollars qualify and which employees and payments are excluded.
02
Box 12 Code TT
How to code qualified overtime on the 2026 W-2, and what payroll readiness now requires after IRS Notice 2025-62 relief expired.
03
Calculation Methodologies
How fluctuating workweek, weighted average, and multi-source pay change the overtime premium you report.
04
Penalty and Cascade Exposure
How IRC §§ 6721 and 6722 exposure compounds when an incorrect regular rate misstates the employee’s deduction.
05
Privileged Payroll Audits
How to structure a counsel-directed audit that survives waiver under In re FirstEnergy while correcting the bonus and differential errors DOL FLSA2026-2 targets.
06
Remediation Before Filing
How to choose between the DOL’s PAID program and unilateral correction, sequence W-2 and W-2c fixes, and document the 29 U.S.C. § 260 good-faith defense.

Program schedule

clock 2:30 pm - 3:30 pm EST

Coding Qualified Overtime on the 2026 W-2: Mechanics, Exclusions, and Penalty Exposure

This session covers the mechanics of reporting qualified overtime compensation in Box 12 using Code TT on the 2026 W-2, as required by the One Big Beautiful Bill Act (OBBBA), P.L. 119-21, and IRC § 225. Attorneys will learn how to isolate the FLSA-mandated overtime premium from total overtime pay, identify which employees and payments are excluded from qualified overtime status, and assess employer exposure under IRC §§ 6721 and 6722 for incorrect or missing Code TT reporting. Attendees will leave with a working understanding of the calculation methodologies, payroll system readiness requirements, and the compliance gap left by the expiration of 2025 transition relief under IRS Notice 2025-62.

Lisa “Lee” A. SchreterLisa “Lee” A. Schreter
Pierre-Joseph NoebesPierre-Joseph Noebes
clock 3:40 pm - 4:40 pm EST

The Privileged Payroll Audit: Remediating Regular-Rate Errors Before the W-2 Deadline

This session teaches attorneys how to structure a legally privileged payroll audit to identify and remediate regular-rate-of-pay errors before the W-2 filing deadline, including the new OBBBA-driven cascade problem linking incorrect regular rates to misstated qualified overtime deductions. Attorneys will learn the structural requirements for maintaining attorney-client privilege and work-product protection over payroll audits, the mechanics of the DOL’s relaunched PAID program, and the step-by-step remediation sequence for correcting errors before they become W-2c obligations or litigation targets. Attendees will leave with a practical framework for advising employers on privilege structuring, PAID program eligibility, and documented good-faith defenses under 29 U.S.C. § 260.

Lisa “Lee” A. SchreterLisa “Lee” A. Schreter
Pierre-Joseph NoebesPierre-Joseph Noebes
Lisa “Lee” A. Schreter

Lisa “Lee” A. Schreter

Littler Mendelson, PC

Pierre-Joseph Noebes

Pierre-Joseph Noebes

Littler Mendelson, PC

Lisa “Lee” A. Schreter

Lisa “Lee” A. Schreter

Littler Mendelson, PC

Lisa “Lee” A. Schreter is a nationally recognized expert who specializes in representing employers in complex class and collective actions involving discrimination, child labor, overtime and other wage-related claims. She also assists employers in developing forward-thinking compliance measures that reduce wage and hour disputes and other employment-related issues.

Education & Credentials

Ms. Schreter earned her Juris Doctor cum laude from Georgia State University in 1991, her Master of Science in Industrial Relations there in 1987, and her Bachelor of Arts from Ithaca College in 1981. She is admitted in Georgia under Bar No. 629852 and before the Supreme Court of the United States, the Supreme Court of Georgia, the First, Second, Sixth, Seventh, Ninth and Eleventh Circuits, and federal district courts in Georgia and Connecticut.

Recognition & Leadership

Ms. Schreter has been listed in The Best Lawyers in America from 2008 through 2027 and ranked in Chambers USA for Labor & Employment from 2009 through 2026. The National Law Journal named her a Trailblazer in Litigation in 2016 and an Outstanding Woman Lawyer in 2015, and she was a Law360 Female Powerbroker in 2014 and a BTI Consulting Group Client Service All-Star in 2019. She is a former chairperson and former member of Littler’s Board of Directors, a member of its Diversity Council, and former chair of its Nominating Committee.

Professional Involvement

Ms. Schreter is a member of the Atlanta Bar Association and of the American Bar Association’s Litigation, Labor and Employment, and Individual Rights sections and its Committee on Fair Labor Standards. She is a Charter Senior Fellow of the Litigation Counsel of America and a Registered Neutral with the Georgia Office of Dispute Resolution.

Experience

Lee also represents management clients in negotiations with the U.S. Department Labor in national matters that involve such issues as independent contractor misclassification exempt status of employees and overall compliance with the Fair Labor Standards Act.

Lee also represents and counsels clients in connection with many other labor and employment matters arising under federal and state laws such as The Equal Pay Act, The Service Contract Act, Title VII of the Civil Rights Act of 1964 and state law wage and hour requirements.

She is also a skilled mediator and arbitrator, certified by the state of Georgia. Prior to becoming an attorney, Lee worked in human resources management where she gained extensive experience in wage and hour issues, compensation design, employee relations, salary and benefit administration and general employment matters.
Pierre-Joseph Noebes

Pierre-Joseph Noebes

Littler Mendelson, PC

Pierre-Joseph Noebes practices in the Atlanta office of Littler Mendelson, PC, where he represents and counsels employers in a broad range of employment matters arising under federal and state law. A 2017 graduate of Georgia State University College of Law, he came to management-side practice after clerking for an administrative law judge at the Equal Employment Opportunity Commission.

Education & Credentials

Mr. Noebes earned his Juris Doctor from Georgia State University College of Law in 2017 and his Bachelor of Arts from the University of Georgia in 2014. In law school he received the CALI Award for Accounting for Lawyers in the fall of 2016 and was named Best Overall Advocate by the Moot Court Board. He is admitted to practice in Georgia and before the Supreme Court of Georgia, the Georgia Court of Appeals, and the United States District Court for the Northern District of Georgia.

Recognition & Leadership

Mr. Noebes has been named to Ones to Watch by The Best Lawyers in America for 2026 and 2027. He served on the Moot Court Board, which recognized him as Best Overall Advocate, and he has continued that work as a teaching associate in the Trial Advocacy Program at Georgia State University College of Law.

Professional Involvement

Mr. Noebes has served as a member of the Alumni Council of Georgia State University College of Law since 2017. His published work includes HB 513 – Civil Practice Act: Anti-SLAPP, 33 Ga. St. U. L. Rev. 109 (2016).

Experience

Mr. Noebes clerked for an administrative law judge at the Equal Employment Opportunity Commission. He served as a legal intern with a workers’ compensation defense firm in the Atlanta area and, separately, as a legal intern for an email marketing service, where he handled contract, intellectual property, employment and data security matters. He also served as a teaching associate in the Trial Advocacy Program at Georgia State University College of Law.
Lisa “Lee” A. Schreter

Lisa “Lee” A. Schreter

Littler Mendelson, PC

Lisa “Lee” A. Schreter is a nationally recognized expert who specializes in representing employers in complex class and collective actions involving discrimination, child labor, overtime and other wage-related claims. She also assists employers in developing forward-thinking compliance measures that reduce wage and hour disputes and other employment-related issues.

Education & Credentials

Ms. Schreter earned her Juris Doctor cum laude from Georgia State University in 1991, her Master of Science in Industrial Relations there in 1987, and her Bachelor of Arts from Ithaca College in 1981. She is admitted in Georgia under Bar No. 629852 and before the Supreme Court of the United States, the Supreme Court of Georgia, the First, Second, Sixth, Seventh, Ninth and Eleventh Circuits, and federal district courts in Georgia and Connecticut.

Recognition & Leadership

Ms. Schreter has been listed in The Best Lawyers in America from 2008 through 2027 and ranked in Chambers USA for Labor & Employment from 2009 through 2026. The National Law Journal named her a Trailblazer in Litigation in 2016 and an Outstanding Woman Lawyer in 2015, and she was a Law360 Female Powerbroker in 2014 and a BTI Consulting Group Client Service All-Star in 2019. She is a former chairperson and former member of Littler’s Board of Directors, a member of its Diversity Council, and former chair of its Nominating Committee.

Professional Involvement

Ms. Schreter is a member of the Atlanta Bar Association and of the American Bar Association’s Litigation, Labor and Employment, and Individual Rights sections and its Committee on Fair Labor Standards. She is a Charter Senior Fellow of the Litigation Counsel of America and a Registered Neutral with the Georgia Office of Dispute Resolution.

Experience

Lee also represents management clients in negotiations with the U.S. Department Labor in national matters that involve such issues as independent contractor misclassification exempt status of employees and overall compliance with the Fair Labor Standards Act.

Lee also represents and counsels clients in connection with many other labor and employment matters arising under federal and state laws such as The Equal Pay Act, The Service Contract Act, Title VII of the Civil Rights Act of 1964 and state law wage and hour requirements.

She is also a skilled mediator and arbitrator, certified by the state of Georgia. Prior to becoming an attorney, Lee worked in human resources management where she gained extensive experience in wage and hour issues, compensation design, employee relations, salary and benefit administration and general employment matters.
Pierre-Joseph Noebes

Pierre-Joseph Noebes

Littler Mendelson, PC

Pierre-Joseph Noebes practices in the Atlanta office of Littler Mendelson, PC, where he represents and counsels employers in a broad range of employment matters arising under federal and state law. A 2017 graduate of Georgia State University College of Law, he came to management-side practice after clerking for an administrative law judge at the Equal Employment Opportunity Commission.

Education & Credentials

Mr. Noebes earned his Juris Doctor from Georgia State University College of Law in 2017 and his Bachelor of Arts from the University of Georgia in 2014. In law school he received the CALI Award for Accounting for Lawyers in the fall of 2016 and was named Best Overall Advocate by the Moot Court Board. He is admitted to practice in Georgia and before the Supreme Court of Georgia, the Georgia Court of Appeals, and the United States District Court for the Northern District of Georgia.

Recognition & Leadership

Mr. Noebes has been named to Ones to Watch by The Best Lawyers in America for 2026 and 2027. He served on the Moot Court Board, which recognized him as Best Overall Advocate, and he has continued that work as a teaching associate in the Trial Advocacy Program at Georgia State University College of Law.

Professional Involvement

Mr. Noebes has served as a member of the Alumni Council of Georgia State University College of Law since 2017. His published work includes HB 513 – Civil Practice Act: Anti-SLAPP, 33 Ga. St. U. L. Rev. 109 (2016).

Experience

Mr. Noebes clerked for an administrative law judge at the Equal Employment Opportunity Commission. He served as a legal intern with a workers’ compensation defense firm in the Atlanta area and, separately, as a legal intern for an email marketing service, where he handled contract, intellectual property, employment and data security matters. He also served as a teaching associate in the Trial Advocacy Program at Georgia State University College of Law.

Credits by state

AK2.0
AL2.0
AR2.0
AZ2.0
CA2.0
CO2.0
CT2.0
DC2.0
DE2.0
FL2.0
GA2.0
HI2.0
IA2.0
ID2.0
IL2.0
IN2.0
KS2.0
KY2.0
LA2.0
MA2.0
MD2.0
ME2.0
MI2.0
MN2.0
MO2.4
MS2.0
MT2.0
NC2.0
ND2.0
NE2.0
NH120.0
NJ2.0
NM2.0
NV2.0
NY2.0
OH2.0
OK2.5
OR2.0
PA2.0
RI2.5
SC2.0
SD2.0
TN2.0
TX2.0
UT2.0
VA2.0
VT2.0
WA2.0
WI2.0
WV2.4
WY2.0

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MCLE Credits

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Minnesota
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Approved
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Nevada
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New Hampshire
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New Jersey
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New Mexico
Approved
New York
Approved
North Carolina
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Ohio
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Pennsylvania
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Rhode Island
Pending
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Alabama

Requirements

The Alabama State Bar MCLE Commission requires attorneys to complete 12 credits, including 1 ethics, by December 31 of each year. All credits must be reported by February 15 of the following year. A maximum of 12 credits, including 1 ethics credit, may be carried over for 1 year only.  

Formats

  • Attorneys can earn unlimited “live” credit through live seminars, live webcasts, and co-sponsored locations with MyLAWCLE-Alabama approved programs
  • Attorneys are limited to 6 credits per compliance period of “online” programs through MyLAwCLE On-Demand programs