CONGRESS FOR VOTERS

DemocratBill · H.R. 1314· House(119-HR-1314)

TIPS Act

Rep. Horsford
Age: 53 years
Nevada
Introduced
2/13/2025
Last activity
2/13/2025 — 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.
Sponsored by
Steven Horsford
Cosponsors
Democrat - 31Republican - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

The TIPS Act aims to amend the Fair Labor Standards Act of 1938 to remove the separate minimum wage currently used for employees who receive tips. Under this bill, tipped employees would instead be paid the standard wage set forth in section 6(a)(1). The legislation also modifies penalties regarding tips that are unlawfully kept or used by employers. Additionally, the bill introduces a new deduction for "qualified tips" within the Internal Revenue Code. This deduction applies to individuals receiving tips in traditional occupations like hospitality or food service, provided they do not have an ownership stake and earn under $112,500.

Yes· 3 of 7

  • Does this raise the lowest wage an employer may pay?+7

    The bill eliminates the lower tipped minimum wage in favor of the standard federal minimum wage.

  • Would households on low incomes be better off under this?+7

    The bill significantly boosts the baseline income for many low-wage service employees.

  • Does this cut taxes for middle-income families?+5

    The bill introduces a new deduction for qualified tips that benefits workers in various service industries.

The opposite

  • Would business owners be better off under this?-6

    Employers will face higher labor costs due to the elimination of the lower tipped minimum wage.