Quick links+
The IAM Union, the largest airline and rail union in North America, applauds the introduction of the No Tax on Overtime for All Workers Act (H.R. 5475) by a bipartisan group of U.S. Representatives, including Reps. 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.).
The TCU/IAM legislative personnel have been working diligently with Congress and other impacted unions to ensure that all workers qualify for the overtime tax deduction that was included in the One Big Beautiful Bill Act (P.L. 119-21).
The current deduction allows for up to $25,000 a year of premium pay earned through working overtime to be exempted from federal taxes (worth up to $6,000/year for qualifying employees), but it only applies to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). Unfortunately, the FLSA has various exemptions and preemptions, including Railway Labor Act (RLA)-covered employees, truck drivers, maritime, and many 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.”
This bill expands the current overtime tax exemption to ensure that airline, rail, and other FLSA-exempt workers are eligible for the same overtime tax relief already afforded to millions of working Americans.
“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 No Tax on Overtime for All Workers Act has been referred to the House Ways and Means Committee.
TCU/IAM is calling on Congress to act quickly and pass this important bill so working families can see immediate relief at tax time.
###
The Transportation Communications Union/IAM proudly represents 35,000 members across the U.S., primarily in the railroad industry. TCU merged with the IAM in 2012 and remains a powerful force for workers.
The IAM Union (International Association of Machinists and Aerospace Workers) is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, shipbuilding, railroad, transit, healthcare, automotive, and other industries across the United States and Canada.
