Unions Join Together to Fix Overtime Tax Loophole for Transportation Workers

From the moment the Senate passed the One Big Beautiful Bill Act (OBBBA) without including transportation workers in the overtime tax relief, labor unions across the country recognized the need for action. 

A broad coalition of labor organizations is now urging Congress to fix a technical flaw in the legislation that unfairly blocks millions of transportation workers, including railroaders, airline crews, truckers, and delivery drivers, from accessing new tax relief provisions intended to benefit hourly workers. 

What’s the Issue?

The OBBBA created a new section of the tax code (26 USC § 225), which allows hourly employees to deduct up to $25,000 in overtime from their taxable income. However, the law’s reliance on a nearly century-old definition of “overtime” from the Fair Labor Standards Act (FLSA) means that workers whose overtime is defined by other laws were simply left out. 

This definition doesn’t reflect the nature of work in transportation and logistics, where extended shifts and unconventional schedules are the norm. As a result, workers in industries that keep our country moving are being denied tax relief that their counterparts in other sectors are able to claim. 

Even first responders like firefighters and EMTs are largely left out under the current definition. The omission is supposedly unintentional, but the consequences are significant. 

Standing Shoulder to Shoulder with Our Union Family

In a strong display of unity, SMART-TD, along with more than 20 unions representing over 3 million workers, has sent a joint letter to Congressional leadership on both sides of the political aisle urging a bipartisan fix to the law. The letter emphasizes the need for a technical correction to ensure the law achieves its intended goal: to support the hardworking Americans who are putting in long hours to keep our economy running. 

Among the signatories are unions from across the transportation spectrum, including SMART-TD, the Air Line Pilots Association, the Teamsters, the Seafarers International Union, and the United Steelworkers, among many others. Together, this coalition stands shoulder to shoulder to advocate for fairness, equity, and recognition for all transportation professionals. 

A Call for Fairness

This effort isn’t about political victories or accolades. It’s about fairness and respect. It’s about making sure that the essential workers who power our supply chains, move our goods, and transport our people are not penalized by an outdated statute. 

SMART-TD’s National Safety & Legislative Director Jared Cassity said “We are proud to be part of this fight on behalf of our nation’s hardworking railroaders. SMART-TD worked to get our men and women included to begin with, and we’ll be the last to stop fighting until every transportation worker in this country gets the recognition—and the tax relief—we’ve earned.”  

The joint labor effort has earned bipartisan attention in Congress, and support continues to grow. Legislative offices are engaging with unions to understand the scope of the problem and identify ways to ensure the law reflects the realities of today’s workforce. 

This work is ongoing, and the coalition remains committed to seeing it through. 

This is what solidarity looks like.