Letter from Airline Division Director Dave Saucedo
Dear Brothers and Sisters,
We’ve received several questions from members about the “No Tax on Overtime” provision included in the One Big Beautiful Bill Act (OBBBA) that was passed last year — specifically, why airline workers are not covered by it.
The new law created a tax deduction that allows eligible hourly workers to deduct up to $12,500 ($25,000 for joint filers) of overtime pay from their taxable income. However, the provision only applies to overtime as defined under the Fair Labor Standards Act (FLSA), a nearly century-old federal law that does not govern overtime for most transportation workers.
Airline workers, including mechanics and related classifications, are not covered by the FLSA’s overtime provision. Because the bill ties eligibility to FLSA-defined overtime, airline workers were automatically excluded — even though we routinely work long hours, extended shifts, and nontraditional schedules that are essential to keeping the industry running.
This exclusion was not because airline workers “don’t work overtime” or because our work is less demanding. It is the result of Congress relying on the only federal definition of overtime —the one under the FLSA. The same flaw in this law also leaves out others not covered by FLSA overtime, including rail workers, truck drivers, mariners, many first responders, and others. While these workers generally receive higher overtime compensation and protections through collective bargaining agreements or employment agreements, such overtime provisions are not set by federal law.
The Teamsters Union continues to push for legislation that would extend the existing overtime tax deduction to all workers whose overtime is not governed by the FLSA, including airline workers. Specifically, we are fighting to get Congress to pass H.R.5475, the No Tax on Overtime for All Workers Act. We are continuing to work with lawmakers from both parties to correct this exclusion and ensure that all hourly workers receive the tax relief they deserve.
Our members put in long hours to keep planes flying safely and communities connected. You deserve the same recognition and tax relief as any other worker. We will continue fighting to make that happen.
In solidarity,
Dave Saucedo
Director, Teamsters Airline Division
International Brotherhood of Teamsters