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 a new bipartisan bill aimed at expanding overtime tax deductions for workers in the airline and railroad sectors. The legislation, known as the No Tax on Overtime for All Workers Act (H.R. 5475), was introduced by 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.).
Currently, federal law allows workers to exempt up to $25,000 per year of premium pay earned through overtime from federal taxes, which can result in savings of up to $6,000 annually for eligible employees. However, this benefit is limited to those whose overtime is defined under the Fair Labor Standards Act (FLSA). Many workers are excluded due to FLSA exemptions and preemptions that affect groups such as Railway Labor Act-covered employees, truck drivers, and maritime workers.
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 proposed bill seeks to extend the current overtime tax exemption so that airline, rail, and other FLSA-exempt employees can also access these tax benefits.
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 bill has been referred to the House Ways and Means Committee for consideration.
TCU/IAM represents about 35,000 members across the United States in the railroad industry. Since merging with IAM in 2012, TCU/IAM continues its advocacy efforts on behalf of its members. The IAM Union itself represents approximately 600,000 active and retired members across various industries in both the United States and Canada.
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