The International Association of Machinists and Aerospace Workers (IAM Union), the largest airline and rail union in North America, has expressed support for the recently introduced No Tax on Overtime for All Workers Act (H.R. 5475). The bipartisan bill was brought forward by 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.).
Legislative staff from TCU/IAM have collaborated with Congress and other unions to push for an expansion of the overtime tax deduction, originally included in the One Big Beautiful Bill Act. Currently, up to $25,000 per year of premium pay earned through overtime can be exempted from federal taxes, which can amount to as much as $6,000 annually for qualifying employees. However, this exemption is limited to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). The FLSA excludes certain groups such as Railway Labor Act-covered employees, truck drivers, and maritime workers.
“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 legislation would expand eligibility for the overtime tax exemption to include airline, rail, and other FLSA-exempt workers.
“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. TCU/IAM is urging Congress to pass it so that working families can benefit from immediate tax relief.
TCU/IAM represents 35,000 members across the United States in railroad-related jobs. Since merging with IAM in 2012, it continues its advocacy efforts within one of North America’s largest industrial trade unions. The IAM Union represents about 600,000 active and retired members across various industries including aerospace, defense, airlines, shipbuilding, railroad, transit, healthcare, automotive sectors in both the United States and Canada.
