Overtime Relief for Railroaders Introduced in Congress

Today (September 19), lawmakers introduced the No Tax on Overtime for All Workers Act, a bipartisan bill that extends the overtime tax exemption to rail workers. If the bill passes and is signed into law, overtime worked by railroaders will qualify for the same federal tax deduction that millions of other workers will receive starting next year.

When Congress passed the One Big Beautiful Bill Actin July,it did not cover our rail members and other employees covered under the Railway Labor Act.

At the time, SMART-TD’s National Safety & Legislative Director Jared Cassity promised to address this oversight. “This isn’t over. If the rest of the blue-collar workforce gets relief on overtime taxes, so should rail workers.”

Today, that promise is one step closer to being delivered.

How You Can Help

The bill (H.R. 5475) is designed to move quickly, with the goal of passing before tax season. The strategy is deliberately bipartisan and has strong support on both sides of the aisle.

Please contact your Representative and ask them to co-sponsor the No Tax on Overtime for All Workers Act. The stronger the support, the faster we can secure this relief for railroad families.

Bipartisan, Drafted with Union Assistance

The bill is spearheaded by Rep. Nicole Malliotakis (R-NY) and Rep. Emilia Sykes (D-OH), who worked closely with SMART-TD and other labor partners to champion this cause. They were joined by Reps. Nick LaLota (R-NY), Steven Horsford (D-NV), Brian Fitzpatrick (R-PA), and Tom Suozzi (D-NY).

Railroaders Deserve Equal Treatment

Taxing our overtime at the same or higher rates than regular income has long been a sore topic. Railroaders deserve the same financial relief already granted to millions of other workers.

Railroad work doesn’t stop for weekends, holidays, or family events. Our members sacrifice personal time to keep freight and passengers moving safely and efficiently across the country. The overtime we earn isn’t a bonus: it’s mandatory, and it comes at the cost of long hours and time away from loved ones.

SMART-TD Successfully Lobbies for Fairness

“This expansion is about fairness,” said Cassity. “It shows that when workers speak up together, we can move Congress. The men and women who keep America’s trains running shouldn’t be treated differently from any other worker when it comes to overtime pay.”

SMART-TD President Jeremy Ferguson added: “We are proud of the bipartisan leadership shown by Representatives Malliotakis and Sykes, along with their colleagues from both parties. They listened to us, they heard our case, and they acted. Our members are the backbone of America’s supply chain, and now their sacrifices are being respected in the tax code. We owe it to ourselves to keep the pedal down and make sure this gets passed in both the House and Senate and signed into law.”

United We Win

From the 4,300 members who sent messages to their Senators in July, to the ongoing efforts of our legislative team in Washington, this bill is proof that collective action works.

As Cassity said back in July: “This isn’t over.” Today, it’s clear that he meant it. Thanks to member activism and bipartisan champions in Congress, railroaders are being recognized in the fight for tax fairness.