The International Association of Machinists and Aerospace Workers (IAM Union), recognized as the largest airline and rail union in North America, has expressed support for the No Tax on Overtime for All Workers Act (H.R. 5475). The bill was introduced 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 the Transportation Communications Union/IAM (TCU/IAM) have been collaborating with Congress and other unions to expand eligibility for the overtime tax deduction originally included in the One Big Beautiful Bill Act. The current law exempts up to $25,000 per year of premium pay earned through overtime from federal taxes, providing qualifying employees with potential annual savings of up to $6,000. However, only workers whose overtime is defined under the Fair Labor Standards Act (FLSA) currently benefit from this exemption. Employees covered by the Railway Labor Act—such as many airline and railroad workers—as well as 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 would extend the overtime tax exemption to include airline, rail, and other FLSA-exempt employees.
“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, 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 House Ways and Means Committee will consider H.R. 5475 next.
TCU/IAM represents about 35,000 members nationwide in railroad jobs; it merged with IAM in 2012 but continues its advocacy efforts independently within IAM’s broader membership base.
The IAM Union itself represents approximately 600,000 active and retired members across various sectors including aerospace, defense, airlines, shipbuilding, railroad, transit, healthcare, automotive industries throughout both United States and Canada.
