I 

118TH CONGRESS 

2D SESSION H. R. 9624 

To amend the Fair Labor Standards Act of 1938 to eliminate the separate 

minimum wage for tipped employees, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2024 

Mr. HORSFORD (for himself and Mr. NORCROSS) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the 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 

A BILL 

To amend the Fair Labor Standards Act of 1938 to eliminate the separate minimum wage for tipped employees, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tipped Income Protec5 tion and Support Act’’ or ‘‘TIPS Act’’. 


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1 SEC. 2. REPEAL OF SEPARATE MINIMUM WAGE FOR TIPPED 

2 EMPLOYEES. 

3 (a) MINIMUM WAGE FOR TIPPED EMPLOYEES.—Sec4 tion 3(m)(2)(A) of the Fair Labor Standards Act of 1938 

5 (29 U.S.C. 203(m)(2)(A)) is amended to read as follows: 

6 ‘‘(A) The wage required to be paid to a tipped em7 ployee shall be the wage set forth in section 6(a)(1). All 

8 tips received by such employee shall be retained by the 

9 employee, except that this subsection shall not be con10 strued to prohibit the pooling of tips among employees 

11 who customarily and regularly receive tips.’’. 

12 (b) PENALTIES.—Section 16 of the Fair Labor 

13 Standards Act of 1938 (29 U.S.C. 216), as amended by 

14 this Act, is further amended— 

15 (1) in subsection (b), by striking ‘‘the sum of 

16 any tip credit taken by the employer and all such 

17 tips unlawfully kept by the employer’’ and inserting 

18 ‘‘the sum of all such tips unlawfully used or kept by 

19 the employer’’; and 

20 (2) in subsection (c), by striking ‘‘the sum of 

21 any tip credit taken by the employer and all such 

22 tips unlawfully kept by the employer’’ and inserting 

23 ‘‘the sum of all such tips unlawfully used or kept by 

24 the employer’’. 

25 SEC. 3. DEDUCTION FOR CASH TIPS. 

26 (a) IN GENERAL.— 


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1 (1) DEDUCTION ALLOWED.—Part VII of sub2 chapter B of chapter 1 of the Internal Revenue Code 

3 of 1986 is amended by redesignating section 224 as 

4 section 225 and by inserting after section 223 the 

5 following new section: 

6 ‘‘SEC. 224. CASH TIPS. 

7 ‘‘(a) IN GENERAL.—There shall be allowed as a de8 duction an amount equal to the amount of qualified tips 

9 received during the taxable year that are included on 

10 statements furnished to the employer pursuant to section 

11 6053(a). 

12 ‘‘(b) LIMITATION.—No deduction shall be allowed 

13 under subsection (a) to any individual for any taxable year 

14 if the adjusted gross income of such individual for such 

15 taxable year exceeds $112,500. 

16 ‘‘(c) QUALIFIED TIPS.—For purposes of this section, 

17 the term ‘qualified tips’ means a tip received by an indi18 vidual— 

19 ‘‘(1) from an unrelated party, 

20 ‘‘(2) who does not have an ownership stake in 

21 the business which employs them in the job in for 

22 which such individual is receiving a tip, and 

23 ‘‘(3) in the course of such individual’s employ24 ment in an occupation which traditionally and cus25 tomarily received tips, including— 


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1 ‘‘(A) cosmetology, 

2 ‘‘(B) hospitality, 

3 ‘‘(C) food and beverage service, 

4 ‘‘(D) parking attendants, and 

5 ‘‘(E) custodial service.’’. 

6 (2) CONFORMING AMENDMENT.—The table of 

7 sections for part VII of subchapter B of chapter 1 

8 of such Code is amended by redesignating the item 

9 relating to section 224 as relating to section 225 

10 and by inserting after the item relating to section 

11 223 the following new item: 

‘‘Sec. 224. Cash tips.’’. 

12 (b) DEDUCTION ALLOWED TO NON-ITEMIZERS.— 

13 Section 63(b) of the Internal Revenue Code of 1986 is 

14 amended by striking ‘‘and’’ at the end of paragraph (3), 

15 by striking the period at the end of paragraph (4) and 

16 inserting ‘‘and’’, and by adding at the end the following 

17 new paragraph: 

18 ‘‘(5) the deduction provided in section 224.’’. 

19 (c) NON-APPLICATION OF CERTAIN LIMITATIONS

20 FOR ITEMIZERS.— 

21 (1) DEDUCTION NOT TREATED AS A MISCELLA22 NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 

23 Internal Revenue Code of 1986 is amended by strik24 ing ‘‘and’’ at the end of paragraph (11), by striking 

25 the period at the end of paragraph (12) and insertVerDate Sep 11 2014 04:42 Sep 24, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H9624.IH H9624

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1 ing ‘‘, and’’, and by adding at the end the following 

2 new paragraph: 

3 ‘‘(13) the deduction under section 224 (relating 

4 to cash tips).’’. 

5 (2) DEDUCTION NOT TAKEN INTO ACCOUNT

6 UNDER OVERALL LIMITATION.—Section 68(c) of the 

7 Internal Revenue Code of 1986 is amended by strik8 ing ‘‘and’’ at the end of paragraph (2), by striking 

9 the period at the end of paragraph (3) and inserting 

10 ‘‘, and’’, and by adding at the end the following new 

11 paragraph: 

12 ‘‘(4) the deduction under section 224 (relating 

13 to cash tips).’’. 

14 (d) WITHHOLDING.—The Secretary of the Treasury 

15 (or the Secretary’s delegate) shall modify the tables and 

16 procedures prescribed under section 3402(a) of the Inter17 nal Revenue Code of 1986 to take into account the deduc18 tion allowed under section 224 of such Code (as added 

19 by this Act). 

20 (e) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2024. 

Æ 


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