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Increased Minimum Wage for Tipped Workers and New Tax Deduction.

This act aims to ensure that tipped employees earn at least the federal minimum wage, regardless of tips received. Additionally, it introduces a new tax deduction for tipped individuals, potentially reducing their tax burden. These changes could impact the earnings and tax obligations of many service workers.
Key points
Tipped employees will be required to receive the full federal minimum wage, without any reduction based on tips.
All tips received by an employee must be retained by that employee, with an exception for tip pooling among customarily tipped employees.
A new tax deduction for qualified cash tips will be allowed for individuals with an adjusted gross income not exceeding $112,500.
This tip deduction will also be available for individuals who do not itemize their deductions.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1314
Sponsor: Rep. Horsford, Steven [D-NV-4]
Process start date: 2025-02-13
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
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 119_HR_1314.

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 2025-02-13.

What are the main provisions?

Key points include:

  • Tipped employees will be required to receive the full federal minimum wage, without any reduction based on tips.
  • All tips received by an employee must be retained by that employee, with an exception for tip pooling among customarily tipped employees.
  • A new tax deduction for qualified cash tips will be allowed for individuals with an adjusted gross income not exceeding $112,500.
  • This tip deduction will also be available for individuals who do not itemize their deductions.
What is the specific legal status?

The current status is Introduced.

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 2025-12-22.

CATEGORIES

Labor Taxes