HR 1314 United States House · 119th Congress

TIPS Act

This bill (HR 1314, TIPS Act) requires employers to pay tipped workers the standard federal minimum wage instead of the current lower rate (currently $2.13/hour), directly affecting workers in hospitality, food service, and similar roles. It also creates a new tax deduction for cash tips received in qualifying jobs (e.g., restaurants, hotels), allowing workers to deduct these tips from taxable income up to $112,500 in adjusted gross income. The deduction applies only to tips from unrelated customers without business ownership stakes, excluding credit card tips. The tax provisions take effect for 2026 tax years.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

President

Introduced Feb 13, 2025 Last action Feb 13, 2025

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Committee

Feb 13, 2025

Committee

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.

lower

Feb 13, 2025

Introduced

Introduced in House

lower

1 primary · 30 co-sponsors