The International Association of Machinists and Aerospace Workers (IAM Union), recognized as the largest airline and rail union in North America, has expressed support for a new bipartisan bill aimed at expanding overtime tax deductions for workers in the airline and railroad sectors. The legislation, known as the No Tax on Overtime for All Workers Act (H.R. 5475), was introduced by 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.).
TCU/IAM legislative staff have collaborated with Congress and other unions to ensure that all employees are eligible for the overtime tax deduction initially included in the One Big Beautiful Bill Act (P.L. 119-21). Currently, up to $25,000 per year of premium pay earned through overtime can be exempted from federal taxes, providing qualifying employees with potential savings of up to $6,000 annually. However, this benefit is only available to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). Many groups, including those covered by the Railway Labor Act, truck drivers, and maritime workers, are excluded due to FLSA exemptions.
“Airline and rail workers are the backbone of our nation’s transportation system,” said IAM Air Transport Territory General Vice President Richie Johnsen. “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 bill seeks to expand eligibility for this tax exemption to include airline, rail, and other employees who are currently exempt from FLSA coverage.
“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.”
“Expanding the overtime tax deduction to rail and airline workers is a matter of fairness and respect,” said Josh Hartford, IAM Assistant to the International President for the Rail Division. “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 has urged Congress to move swiftly on passing this legislation so that working families can experience immediate financial relief during tax season.
The Transportation Communications Union/IAM represents about 35,000 members across the United States—mainly in railroads—and merged with IAM in 2012 while maintaining its advocacy role. The IAM Union itself represents approximately 600,000 active and retired members across industries such as aerospace, defense, airlines, shipbuilding, railroad operations, transit systems, healthcare services, automotive manufacturing, among others throughout both the United States and Canada.
