The International Association of Machinists and Aerospace Workers (IAM Union), the largest union representing airline and rail employees in North America, has expressed support for new bipartisan legislation that would expand overtime tax deductions to more workers in the transportation sector. The proposed No Tax on Overtime for All Workers Act (H.R. 5475) was introduced 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.).
Currently, under the One Big Beautiful Bill Act, workers can deduct up to $25,000 a year in premium pay earned through overtime from their federal taxes, with potential savings of up to $6,000 per year. However, this benefit only applies to those whose overtime is defined by the Fair Labor Standards Act (FLSA). Many transportation workers—including those covered by the Railway Labor Act, truck drivers, and maritime employees—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 new bill aims to include airline, rail, and other FLSA-exempt workers so they can access the same overtime tax benefits available to millions of 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.”
Josh Hartford, IAM Assistant to the International President for the Rail Division, stated: “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 No Tax on Overtime for All Workers Act has been referred to the House Ways and Means Committee for consideration.
The Transportation Communications Union/IAM represents about 35,000 U.S. members primarily in railroads. TCU merged with IAM in 2012 but remains active within labor advocacy. The IAM Union represents approximately 600,000 active and retired members across multiple industries throughout North America.
