The International Association of Machinists and Aerospace Workers (IAM Union), 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, 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 TCU/IAM have collaborated with Congress and other unions to advocate for expanding the overtime tax deduction to include all workers. Currently, the deduction allows up to $25,000 per year of premium pay earned through overtime to be exempt from federal taxes, which can provide up to $6,000 in annual savings for eligible employees. However, this benefit is limited to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). The FLSA excludes several groups, such as those covered by the Railway Labor Act, truck drivers, and maritime workers.
“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 aims to expand eligibility for the overtime tax exemption so that airline, rail, and other FLSA-exempt employees would receive similar benefits as millions of other American workers.
“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 sent to the House Ways and Means Committee for consideration.
TCU/IAM represents about 35,000 members across the United States in industries such as railroads. The union merged with IAM in 2012 but continues its advocacy efforts independently within its sector. The IAM Union itself represents approximately 600,000 active and retired members across various sectors including aerospace, defense, airlines, shipbuilding, railroad operations, transit systems, healthcare services, automotive manufacturing among others throughout North America.
