The International Association of Machinists and Aerospace Workers (IAM Union), along with the Transportation Communications Union/IAM (TCU/IAM), has expressed support for a new bipartisan bill aimed at expanding overtime tax deductions to airline, railroad, and other currently exempt workers. The proposed legislation, known as the 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, federal law allows up to $25,000 per year in premium pay earned through overtime to be exempt from federal taxes, which can result in savings of up to $6,000 annually for qualifying employees. However, this deduction only applies to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). Many groups—including those covered by the Railway Labor Act such as rail and airline employees—are excluded due to exemptions within the FLSA.
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.”
The bill seeks to address these exclusions by extending eligibility for the overtime tax exemption to airline, rail, and other FLSA-exempt employees.
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 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 primarily railroad-related roles. The union merged with IAM in 2012 but continues its advocacy efforts independently within its sector.
The IAM Union represents about 600,000 active and retired members across industries including aerospace, defense, airlines, shipbuilding, railroad operations, transit systems, healthcare services, automotive manufacturing, among others throughout North America.
