A new IBEW-backed bill would bring the “no tax on overtime” legislation enacted earlier this year to more workers, including railroaders, union building trades workers and firefighters.
“This bill honors the sacrifices of those who keep our neighborhoods safe and our economy strong, while ensuring hardworking Americans can keep more of what they earn,” said Rep. Nicole Malliotakis of New York, who introduced the bill. “By lightening the tax burden on overtime pay, we’re rewarding the extra hours and hard work that so many families depend on.”
The legislation, which has bipartisan support, would amend a portion of the One Big Beautiful Bill Act, signed into law in July, to include more workers who are eligible for a tax deduction on overtime. As currently written, the law allows certain workers the ability to deduct up to $25,000 in overtime earnings from taxable income.
The new bill, dubbed the No Tax on Overtime for All Workers Act, would expand the tax deduction to include workers covered by the Railway Labor Act and workers whose overtime is defined by a collective bargaining agreement. This includes railroaders, first responders, transport workers, municipal workers and union building trades workers.
The IBEW joins 20 other unions and affiliates, representing more than 3 million workers, in supporting the legislation, cosponsored by a bipartisan group of lawmakers: Reps. Emilia Sykes of Ohio, Nick LaLota of New York, Steven Horsford of Nevada, Brian Fitzpatrick of Pennsylvania and Tom Suozzi of New York.
“We commend Representatives Malliotakis, Sykes, Suozzi, LaLota, Fitzpatrick, and Horsford for their bipartisan leadership in introducing legislation to expand the No Tax on Overtime benefit,” International President Kenneth W. Cooper said. “This bill will ensure IBEW railroaders receive the same fair treatment as other eligible workers, recognizing the long hours they put in to keep our economy and communities moving,”
The bill, introduced Sept. 18, was designed to be enacted in time for the upcoming tax season.
“Hard work should never be punished. The No Tax on Overtime for All Workers Act is a bipartisan, pro-worker reform that makes qualified overtime pay fully deductible — because when working Americans give more of their time, they deserve more in their paycheck,” Fitzpatrick said.
