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 bill was brought forward by a bipartisan 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.).
Legislative staff from TCU/IAM have collaborated with Congress and other unions to expand eligibility for an overtime tax deduction originally included in the One Big Beautiful Bill Act. The current law allows workers to exempt up to $25,000 of overtime pay per year from federal taxes, potentially saving qualifying employees up to $6,000 annually. However, this exemption only applies to those whose overtime is defined under the Fair Labor Standards Act (FLSA). Several categories of workers, such as 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 legislation aims to extend the existing overtime tax exemption to airline, rail, and other FLSA-exempt employees so that they can benefit from the same tax relief available to millions of American 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 No Tax on Overtime for All Workers Act has been referred to the House Ways and Means Committee for consideration.
TCU/IAM represents approximately 35,000 members across the United States in sectors primarily related to railroads. The organization merged with IAM in 2012 but continues its advocacy for worker rights within its industry focus.
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.
