The International Association of Machinists and Aerospace Workers (IAM Union) 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 U.S. Representatives Nicole Malliotakis, Emilia Sykes, Nick LaLota, Brian Fitzpatrick, Steven Horsford, and Tom Suozzi.
TCU/IAM legislative staff have collaborated with Congress and other unions to advocate for expanding eligibility for the overtime tax deduction that was part of the One Big Beautiful Bill Act (P.L. 119-21). Under current law, up to $25,000 per year in premium pay from overtime work can be exempted from federal taxes—providing as much as $6,000 in relief annually for eligible employees. However, this benefit only applies to workers whose overtime is defined under the Fair Labor Standards Act (FLSA), excluding those covered by the Railway Labor Act as well as truck drivers, maritime workers, and others.
“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 seeks to extend this tax exemption to airline, rail, and other FLSA-exempt employees.
“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 is urging Congress to move quickly so that affected working families may benefit from immediate tax relief.
The Transportation Communications Union/IAM represents about 35,000 members across the United States in the railroad industry. Since merging with IAM in 2012, TCU/IAM continues its advocacy efforts on behalf of its members.
The IAM Union represents approximately 600,000 active and retired members across multiple sectors including aerospace, defense, airlines, shipbuilding, railroad operations, transit services, healthcare, automotive manufacturing and more throughout North America.
