Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1314 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1314
5	5	To amend the Fair Labor Standards Act of 1938 to eliminate the separate
6	6	minimum wage for tipped employees, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	FEBRUARY13, 2025
9	9	Mr. H
10	10	ORSFORD(for himself, Mr. NORCROSS, Ms. TITUS, Ms. LEEof Nevada,
11	11	Mr. C
12	12	LEAVER, Mrs. RAMIREZ, Mrs. MCIVER, Mr. THOMPSONof Mis-
13	13	sissippi, Ms. V
14	14	ELA´ZQUEZ, Mr. BOYLEof Pennsylvania, and Mr. CARTER
15	15	of Louisiana) introduced the following bill; which was referred to the
16	16	Committee on Ways and Means, and in addition to the Committee on
17	17	Education and Workforce, for a period to be subsequently determined by
18	18	the Speaker, in each case for consideration of such provisions as fall with-
19	19	in the jurisdiction of the committee concerned
20	20	A BILL
21	21	To amend the Fair Labor Standards Act of 1938 to elimi-
22	22	nate the separate minimum wage for tipped employees,
23	23	and for other purposes.
24	24	Be it enacted by the Senate and House of Representa-1
25	25	tives of the United States of America in Congress assembled, 2
26	26	SECTION 1. SHORT TITLE. 3
27	27	This Act may be cited as the ‘‘Tipped Income Protec-4
28	28	tion and Support Act’’ or ‘‘TIPS Act’’. 5
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31	31	•HR 1314 IH
32	32	SEC. 2. REPEAL OF SEPARATE MINIMUM WAGE FOR TIPPED 1
33	33	EMPLOYEES. 2
34	34	(a) M
35	35	INIMUMWAGE FORTIPPEDEMPLOYEES.—Sec-3
36	36	tion 3(m)(2)(A) of the Fair Labor Standards Act of 1938 4
37	37	(29 U.S.C. 203(m)(2)(A)) is amended to read as follows: 5
38	38	‘‘(A) The wage required to be paid to a tipped em-6
39	39	ployee shall be the wage set forth in section 6(a)(1). All 7
40	40	tips received by such employee shall be retained by the 8
41	41	employee, except that this subsection shall not be con-9
42	42	strued to prohibit the pooling of tips among employees 10
43	43	who customarily and regularly receive tips.’’. 11
44	44	(b) P
45	45	ENALTIES.—Section 16 of the Fair Labor 12
46	46	Standards Act of 1938 (29 U.S.C. 216), as amended by 13
47	47	this Act, is further amended— 14
48	48	(1) in subsection (b), by striking ‘‘the sum of 15
49	49	any tip credit taken by the employer and all such 16
50	50	tips unlawfully kept by the employer’’ and inserting 17
51	51	‘‘the sum of all such tips unlawfully used or kept by 18
52	52	the employer’’; and 19
53	53	(2) in subsection (c), by striking ‘‘the sum of 20
54	54	any tip credit taken by the employer and all such 21
55	55	tips unlawfully kept by the employer’’ and inserting 22
56	56	‘‘the sum of all such tips unlawfully used or kept by 23
57	57	the employer’’. 24
58	58	SEC. 3. DEDUCTION FOR CASH TIPS. 25
59	59	(a) I
60	60	NGENERAL.— 26
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63	63	•HR 1314 IH
64	64	(1) DEDUCTION ALLOWED .—Part VII of sub-1
65	65	chapter B of chapter 1 of the Internal Revenue Code 2
66	66	of 1986 is amended by redesignating section 224 as 3
67	67	section 225 and by inserting after section 223 the 4
68	68	following new section: 5
69	69	‘‘SEC. 224. CASH TIPS. 6
70	70	‘‘(a) I
71	71	NGENERAL.—There shall be allowed as a de-7
72	72	duction an amount equal to the amount of qualified tips 8
73	73	received during the taxable year that are included on 9
74	74	statements furnished to the employer pursuant to section 10
75	75	6053(a). 11
76	76	‘‘(b) L
77	77	IMITATION.—No deduction shall be allowed 12
78	78	under subsection (a) to any individual for any taxable year 13
79	79	if the adjusted gross income of such individual for such 14
80	80	taxable year exceeds $112,500. 15
81	81	‘‘(c) Q
82	82	UALIFIEDTIPS.—For purposes of this section, 16
83	83	the term ‘qualified tips’ means a tip received by an indi-17
84	84	vidual— 18
85	85	‘‘(1) from an unrelated party, 19
86	86	‘‘(2) who does not have an ownership stake in 20
87	87	the business which employs them in the job in for 21
88	88	which such individual is receiving a tip, and 22
89	89	‘‘(3) in the course of such individual’s employ-23
90	90	ment in an occupation which traditionally and cus-24
91	91	tomarily received tips, including— 25
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94	94	•HR 1314 IH
95	95	‘‘(A) cosmetology, 1
96	96	‘‘(B) hospitality, 2
97	97	‘‘(C) food and beverage service, 3
98	98	‘‘(D) parking attendants, and 4
99	99	‘‘(E) custodial service.’’. 5
100	100	(2) C
101	101	ONFORMING AMENDMENT .—The table of 6
102	102	sections for part VII of subchapter B of chapter 1 7
103	103	of such Code is amended by redesignating the item 8
104	104	relating to section 224 as relating to section 225 9
105	105	and by inserting after the item relating to section 10
106	106	223 the following new item: 11
107	107	‘‘Sec. 224. Cash tips.’’.
108	108	(b) DEDUCTIONALLOWED TO NON-ITEMIZERS.— 12
109	109	Section 63(b) of the Internal Revenue Code of 1986 is 13
110	110	amended by striking ‘‘and’’ at the end of paragraph (3), 14
111	111	by striking the period at the end of paragraph (4) and 15
112	112	inserting ‘‘and’’, and by adding at the end the following 16
113	113	new paragraph: 17
114	114	‘‘(5) the deduction provided in section 224.’’. 18
115	115	(c) N
116	116	ON-APPLICATION OF CERTAINLIMITATIONS 19
117	117	FORITEMIZERS.— 20
118	118	(1) D
119	119	EDUCTION NOT TREATED AS A MISCELLA -21
120	120	NEOUS ITEMIZED DEDUCTION .—Section 67(b) of the 22
121	121	Internal Revenue Code of 1986 is amended by strik-23
122	122	ing ‘‘and’’ at the end of paragraph (11), by striking 24
123	123	the period at the end of paragraph (12) and insert-25
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126	126	•HR 1314 IH
127	127	ing ‘‘, and’’, and by adding at the end the following 1
128	128	new paragraph: 2
129	129	‘‘(13) the deduction under section 224 (relating 3
130	130	to cash tips).’’. 4
131	131	(2) D
132	132	EDUCTION NOT TAKEN INTO ACCOUNT 5
133	133	UNDER OVERALL LIMITATION .—Section 68(c) of the 6
134	134	Internal Revenue Code of 1986 is amended by strik-7
135	135	ing ‘‘and’’ at the end of paragraph (2), by striking 8
136	136	the period at the end of paragraph (3) and inserting 9
137	137	‘‘, and’’, and by adding at the end the following new 10
138	138	paragraph: 11
139	139	‘‘(4) the deduction under section 224 (relating 12
140	140	to cash tips).’’. 13
141	141	(d) W
142	142	ITHHOLDING.—The Secretary of the Treasury 14
143	143	(or the Secretary’s delegate) shall modify the tables and 15
144	144	procedures prescribed under section 3402(a) of the Inter-16
145	145	nal Revenue Code of 1986 to take into account the deduc-17
146	146	tion allowed under section 224 of such Code (as added 18
147	147	by this Act). 19
148	148	(e) E
149	149	FFECTIVEDATE.—The amendments made by 20
150	150	this section shall apply to taxable years beginning after 21
151	151	December 31, 2025. 22
152	152	Æ
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