arrow_back Back to App

Full Minimum Wage and Tax Deduction for Tipped Employees

This Act eliminates the separate, lower minimum wage for tipped employees, guaranteeing them the full federal minimum wage rate. It also introduces a new tax deduction for reported cash tips, reducing the tax burden for individuals earning below $112,500 annually. These changes aim to increase income stability and financial protection for service sector workers.
Key points
Guarantees the full federal minimum wage for all tipped employees (ending the lower tipped minimum wage).
Introduces a new income tax deduction for reported cash tips (up to an Adjusted Gross Income limit of $112,500).
All tips must be retained by the employee; penalties for employers unlawfully keeping tips are increased.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_9624
Sponsor: Rep. Horsford, Steven [D-NV-4]
Process start date: 2024-09-17
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

TIPS Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9624.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-09-17.

What are the main provisions?

Key points include:

  • Guarantees the full federal minimum wage for all tipped employees (ending the lower tipped minimum wage).
  • Introduces a new income tax deduction for reported cash tips (up to an Adjusted Gross Income limit of $112,500).
  • All tips must be retained by the employee; penalties for employers unlawfully keeping tips are increased.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Horsford, Steven [D-NV-4].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Labor Taxes