The International Association of Machinists and Aerospace Workers (IAM), the largest union for airline and rail employees in North America, has expressed support for new legislation aimed at expanding federal tax deductions on overtime pay to include more workers.
A bipartisan group of U.S. Representatives introduced the No Tax on Overtime for All Workers Act (H.R. 5475). The sponsors are 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.).
Currently, a provision from the One Big Beautiful Bill Act allows workers to exempt up to $25,000 in annual overtime earnings from federal taxes—potentially saving qualifying employees as much as $6,000 per year. However, this benefit is limited to those whose overtime is defined under the Fair Labor Standards Act (FLSA). Many employees are excluded due to exemptions in the FLSA, including those covered by the Railway Labor Act, truck drivers, maritime workers, and others.
IAM Air Transport Territory General Vice President Richie Johnsen stated: “Airline and rail workers are the backbone of our nation’s transportation system. These workers hustle and earn every penny of their overtime, and it’s only fair they receive the same tax relief as other workers.”
If passed, H.R. 5475 would extend these tax exemptions to airline and railroad workers who are currently excluded from coverage under FLSA rules.
TCU/IAM National President Arthur Maratea commented: “This bipartisan bill ensures that ALL working families are rewarded for their dedication and hard work come tax time. 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 proposed legislation has been sent to the House Ways and Means Committee for consideration.
TCU/IAM is urging Congress to move forward with passing this bill so that affected families can benefit from increased take-home pay during tax season.
The Transportation Communications Union/IAM represents approximately 35,000 members across various U.S. industries but mainly focuses on railroad employees. TCU merged with IAM in 2012 but continues independent advocacy within its sector.
IAM represents about 600,000 active and retired members across multiple industries including aerospace, defense, airlines, shipbuilding, transit systems, healthcare services, automotive manufacturing in both United States and Canada.
