The International Association of Machinists and Aerospace Workers (IAM) and the Transportation Communications Union/IAM (TCU/IAM) are supporting a bipartisan initiative in Congress aimed at expanding overtime tax relief to airline, railroad, and other currently excluded workers.
A group of U.S. Representatives—Nicole Malliotakis (R-N.Y.), Emilia Sykes (D-Ohio), Nick LaLota (R-N.Y.), Brian Fitzpatrick (R-Pa.), Steven Horsford (D-Nev.), and Tom Suozzi (D-N.Y.)—recently introduced the No Tax on Overtime for All Workers Act (H.R. 5475). The bill seeks to broaden eligibility for a federal tax deduction on overtime pay.
Currently, under the One Big Beautiful Bill Act, workers can exempt up to $25,000 per year of premium pay earned through overtime from federal taxes, potentially saving up to $6,000 annually. However, this deduction only applies to those whose overtime is covered by the Fair Labor Standards Act (FLSA). Many groups—including employees covered by the Railway Labor Act, truck drivers, and maritime workers—are not eligible due to exemptions within the FLSA.
IAM Air Transport Territory General Vice President Richie Johnsen stated: “Airline and rail workers are the backbone of our nation’s transportation system. These workers hustle and earn every penny of their overtime, and it’s only fair they receive the same tax relief as other workers.”
The proposed legislation would expand eligibility so that airline, rail, and other FLSA-exempt employees could also benefit from this overtime tax exemption.
“This bipartisan bill ensures that ALL working families are rewarded for their dedication and hard work come tax time,” said TCU/IAM National President Arthur Maratea. “Many railroads – and I’m sure other employers – have been crushing our members with forced overtime. But regardless if the overtime is voluntary or not, our members deserve the same tax benefits as everyone else.”
Josh Hartford, IAM Assistant to the International President for the Rail Division, added: “Expanding the overtime tax deduction to rail and airline workers is a matter of fairness and respect. It means our members won’t be left behind when they step up to keep the economy on track.”
The bill has been referred to the House Ways and Means Committee for consideration.
TCU/IAM represents about 35,000 members in the United States primarily within the railroad sector. The union merged with IAM in 2012 but maintains its identity within the broader organization. The IAM itself is one of North America’s largest industrial trade unions with approximately 600,000 active and retired members across various industries in both the United States and Canada.
###
