The International Association of Machinists and Aerospace Workers (IAM), recognized as the largest airline and rail union in North America, has expressed support for a new bipartisan bill aimed at expanding tax relief on overtime pay to more workers in the transportation sector. The No Tax on Overtime for All Workers Act (H.R. 5475) was introduced by U.S. Representatives Nicole Malliotakis, Emilia Sykes, Nick LaLota, Brian Fitzpatrick, Steven Horsford, and Tom Suozzi.
Currently, federal law allows employees to exempt up to $25,000 per year of premium pay earned through overtime from federal taxes—a benefit worth up to $6,000 annually for those who qualify. However, this deduction is limited to workers whose overtime is defined under the Fair Labor Standards Act (FLSA). Many transportation employees—including those covered by the Railway Labor Act—are excluded due to exemptions within FLSA regulations.
IAM Air Transport Territory General Vice President Richie Johnsen said: “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 legislation seeks to extend eligibility for the overtime tax exemption to airline, rail, and other employees not currently covered under FLSA provisions.
TCU/IAM National President Arthur Maratea stated: “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.
The Transportation Communications Union/IAM represents about 35,000 members across the United States in railroad-related jobs. TCU merged with IAM in 2012 but continues its advocacy efforts independently within its industry focus.
IAM itself counts approximately 600,000 active and retired members throughout North America across sectors such as aerospace, defense industries, airlines, shipbuilding, transit systems, healthcare services, automotive trades—and more—in both Canada and the United States.
