Bills · HR 1314
IN COMMITTEE· 119TH CONGRESS
House BillHR 1314Taxation
TIPS Act
INTRO FEB 13· LAST ACTION FEB 13
READING
4MIN
COSPONSORS
30
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to provide greater financial stability and potentially reduce the tax burden for millions of tipped workers across the country. By eliminating the 'tipped minimum wage,' it would ensure that these workers receive a consistent base income, regardless of the tips they earn on any given day, which can be crucial in industries with fluctuating demand. This change could help lift some workers out of poverty and reduce reliance on public assistance.
For businesses, particularly small restaurants, this bill could mean significant changes to their operating models due to increased labor costs. It raises questions about how these costs would be absorbed – through higher menu prices, reduced staffing, or changes in service models. Understanding these trade-offs is important for voters concerned about both worker welfare and the economic health of local businesses.
KEY PROVISIONS
5AI-extractedPROVISION 01
Eliminates the separate, lower minimum wage for tipped employees, requiring employers to pay them the full federal minimum wage directly.
This ensures a stable and higher base income for tipped workers, reducing their reliance on tips for meeting the federal minimum wage.
PROVISION 02
Clarifies that tipped employees retain all tips, allowing for tip pooling among employees who customarily receive tips.
This protects employees' right to their tips while maintaining a common practice in many service industries.
PROVISION 03
Creates a new federal income tax deduction for qualified cash tips reported to employers.
This provides tax relief for many tipped workers, potentially increasing their net income.
PROVISION 04
Establishes an income limit of $112,500 Adjusted Gross Income for eligibility to take the cash tip deduction.
This targets the tax benefit towards middle and lower-income tipped workers.
PROVISION 05
Amends penalties under the Fair Labor Standards Act to focus solely on unlawfully used or kept tips, reflecting the elimination of the tip credit.
This adjusts enforcement mechanisms to align with the new wage requirements for tipped employees.
SPONSORSHIP
1 + 30
D· Nevada
YRS IN OFFICE
13
BILLS LED
33
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 30 REP 0 IND 0
ACTION TIMELINE
2 EVENTSFEB 13
Introduced in House
FEB 13
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
BILL INFO
TypeHouse Bill
NumberHR 1314
Congress119th
StatusIn Committee
IntroducedFeb 13, 2025
Last actionFeb 13, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED FEB 13, 2025
House BillHR 1314Taxation
TIPS Act
INTRODUCED FEB 13, 2025· LAST ACTION FEB 13, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
30
COMPLEXITY
Moderate
