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.
The Teamsters National Negotiating Committee for United Airlines met again this week in Houston expecting real engagement on scope. Instead, the company made its position clear: it is not prepared to move forward or bargain in good faith.
In our last dispatch, we incorrectly noted that the 2025 industry reset would be reflected in your first paycheck. The reset will be reflected in your second December paycheck.