The Brotherhood of Railroad Signalmen, alongside nearly 20 other labor unions representing more than three million workers, is calling on Congress to fix a critical oversight in the federal tax code that unfairly excludes millions of essential workers from a major tax benefit.
As part of the One Big Beautiful Bill Act (OBBA), most hourly workers are now eligible to deduct up to $25,000 of overtime pay from their taxable income. This benefit can potentially save working families up to $6,000 each year. But due to a technical flaw in the law, that benefit is being denied to many transportation and emergency service workers, including Signalmen.
The issue stems from the law’s reliance on the outdated definition of “overtime” found in the Fair Labor Standards Act (FLSA). That standard doesn’t reflect the real-world schedules of modern transportation and public safety jobs. The current formula excludes many highly skilled hourly workers simply because their roles were never meant to be captured under the original FLSA definitions.
Together with our partners in labor, BRS is urging House and Senate leadership to fix this problem and extend the full intent of the overtime tax benefit to all hourly workers. This includes those who keep the nation’s infrastructure moving and communities safe.
This is a united effort, and we remain committed to ensuring our members are not left behind.
Read Full Letter HERE