No Tax on OT Act Toolkit
The IBEW is calling on all members, especially railroaders, to mobilize now and urge their members of Congress to support H.R. 5475, the No Tax on Overtime for All Workers Act. This bill would finally extend overtime tax relief to railroaders and millions of union members who are currently excluded.
The One Big Beautiful Bill Act allows workers to exclude up to $25,000 of overtime pay from federal income taxes, worth up to $6,000 in savings a year for many households. But outdated rules in the 1938 Fair Labor Standards Act (FLSA) leave millions of workers out, including railroaders.
The FLSA exempts transportation and emergency workers from federal overtime rules and sets an unfairly high bar, so other targeted workers rarely qualify. As a result, railroaders can work long, irregular hours without qualifying for federal overtime. This means they also miss out on the new overtime tax break.
Why this matters to union members:
- Railroaders work long, irregular hours, yet see no federal overtime benefit
- Union-negotiated contracts already define fair overtime pay, but the tax code ignores those agreements
- H.R. 5475 fixes this by recognizing collectively bargained overtime and putting money back into the hands of workers, not corporations
H.R. 5475 would expand the definition of overtime so that all workers can claim overtime relief, regardless of outdated FLSA rules. For railroaders, this means recognition of overtime under the Railway Labor Act, so that union-negotiated overtime time finally counts for tax relief.
Tell your members of Congress that overtime should be tax-free for all workers by using the toolkit below:
- Letter Campaign: Visit https://bit.ly/4gRa5v3 to send a letter to your members of Congress. Enter your mailing address, click “Start Writing,” and a sample letter will populate, telling your members of Congress that all overtime should be tax-free for all workers.
- Social Media Post with Graphics: Share this post with one of the following graphics on your social media channels to inform fellow IBEW members about this proposed legislation:
- “I’m a proud IBEW member who supports H.R. 5475, the No Tax on Overtime for All Workers Act, would finally extend overtime tax relief to railroaders and millions of other union members. Honor all overtime and put money back into the hands of all working people, including railroaders, by writing to your members of Congress today. https://bit.ly/4gRa5v3” [Insert SM graphic 1, graphic 2, or graphic 3]
- Share these resources with fellow IBEW members:
