No, the top z-index element will have focus. But you can create another transparent top layer on top of the overlay layer, which will be clickable. So:
z-index:1 Content element z-index:2 Mask/Overlay element z-index:3 Click element
This is because the browser cannot tell where your PNG is transparent. It just takes it as an image and does not miss focus if it has transparent pixels. This is why you can put a completely empty div with fixed and height, and it will be clickable.
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