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, including 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 the Transportation Communications Union/IAM (TCU/IAM) have been working with Congress and other unions to ensure that all workers can access an overtime tax deduction previously included in the One Big Beautiful Bill Act. Under current law, up to $25,000 per year of premium pay earned through overtime can be exempted from federal taxes, providing up to $6,000 annually for eligible employees. However, this benefit only applies to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). Several groups are excluded from FLSA coverage, such as those covered by the Railway Labor Act, truck drivers, maritime workers, and 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.”
The proposed legislation would extend the existing overtime tax exemption to include airline, rail, and other employees who are not covered by FLSA rules.
“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 bill has been referred to the House Ways and Means Committee for further consideration.
TCU/IAM represents about 35,000 members across the United States in railroad-related roles. The union merged with IAM in 2012 but continues its advocacy efforts independently within IAM’s broader structure. The IAM Union itself represents approximately 600,000 active and retired members in industries such as aerospace, defense, airlines, shipbuilding, railroad operations, transit systems, healthcare services, automotive manufacturing, among others throughout both the United States and Canada.
