I 
119TH CONGRESS 
1ST SESSION H. R. 1314 
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 
FEBRUARY 13, 2025 
Mr. HORSFORD (for himself, Mr. NORCROSS, Ms. TITUS, Ms. LEE of Nevada, 
Mr. CLEAVER, Mrs. RAMIREZ, Mrs. MCIVER, Mr. THOMPSON of Mis-
sissippi, Ms. VELA´ZQUEZ, Mr. BOYLE of Pennsylvania, and Mr. CARTER 
of Louisiana) introduced the following bill; which was 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 with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Fair Labor Standards Act of 1938 to elimi-
nate the separate minimum wage for tipped employees, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tipped Income Protec-
tion and Support Act’’ or ‘‘TIPS Act’’. 
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SEC. 2. REPEAL OF SEPARATE MINIMUM WAGE FOR TIPPED 
EMPLOYEES. 
(a) MINIMUM WAGE FOR TIPPED EMPLOYEES.—Sec-
tion 3(m)(2)(A) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 203(m)(2)(A)) is amended to read as follows: 
‘‘(A) The wage required to be paid to a tipped em-
ployee shall be the wage set forth in section 6(a)(1). All 
tips received by such employee shall be retained by the 
employee, except that this subsection shall not be con-
strued to prohibit the pooling of tips among employees 
who customarily and regularly receive tips.’’. 
(b) PENALTIES.—Section 16 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 216), as amended by 
this Act, is further amended— 
(1) in subsection (b), by striking ‘‘the sum of 
any tip credit taken by the employer and all such 
tips unlawfully kept by the employer’’ and inserting 
‘‘the sum of all such tips unlawfully used or kept by 
the employer’’; and 
(2) in subsection (c), by striking ‘‘the sum of 
any tip credit taken by the employer and all such 
tips unlawfully kept by the employer’’ and inserting 
‘‘the sum of all such tips unlawfully used or kept by 
the employer’’. 
SEC. 3. DEDUCTION FOR CASH TIPS. 
(a) IN GENERAL.— 
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(1) DEDUCTION ALLOWED.—Part VII of sub-
chapter B of chapter 1 of the Internal Revenue Code 
of 1986 is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the 
following new section: 
‘‘SEC. 224. CASH TIPS. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the amount of qualified tips 
received during the taxable year that are included on 
statements furnished to the employer pursuant to section 
6053(a). 
‘‘(b) LIMITATION.—No deduction shall be allowed 
under subsection (a) to any individual for any taxable year 
if the adjusted gross income of such individual for such 
taxable year exceeds $112,500. 
‘‘(c) QUALIFIED TIPS.—For purposes of this section, 
the term ‘qualified tips’ means a tip received by an indi-
vidual— 
‘‘(1) from an unrelated party, 
‘‘(2) who does not have an ownership stake in 
the business which employs them in the job in for 
which such individual is receiving a tip, and 
‘‘(3) in the course of such individual’s employ-
ment in an occupation which traditionally and cus-
tomarily received tips, including— 
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‘‘(A) cosmetology, 
‘‘(B) hospitality, 
‘‘(C) food and beverage service, 
‘‘(D) parking attendants, and 
‘‘(E) custodial service.’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections for part VII of subchapter B of chapter 1 
of such Code is amended by redesignating the item 
relating to section 224 as relating to section 225 
and by inserting after the item relating to section 
223 the following new item: 
‘‘Sec. 224. Cash tips.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and 
inserting ‘‘and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the deduction provided in section 224.’’. 
(c) NON-APPLICATION
OF CERTAIN LIMITATIONS 
FOR ITEMIZERS.— 
(1) DEDUCTION NOT TREATED AS A MISCELLA-
NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and insert-
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ing ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(13) the deduction under section 224 (relating 
to cash tips).’’. 
(2) DEDUCTION
NOT
TAKEN
INTO
ACCOUNT 
UNDER OVERALL LIMITATION.—Section 68(c) of the 
Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting 
‘‘, and’’, and by adding at the end the following new 
paragraph: 
‘‘(4) the deduction under section 224 (relating 
to cash tips).’’. 
(d) WITHHOLDING.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall modify the tables and 
procedures prescribed under section 3402(a) of the Inter-
nal Revenue Code of 1986 to take into account the deduc-
tion allowed under section 224 of such Code (as added 
by this Act). 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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