H.R. 1314

119th CONGRESS 1st Session

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 · Sponsor: Mr. Horsford

Table of contents

• H.R. 1314
  • Sec. 224. Cash tips.

Sec. 224. Cash tips.

• (a) In general
  • There shall be allowed as a deduction 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 means a tip received by an individual— qualified tips
    • from an unrelated party,
    • 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
    • in the course of such individual’s employment in an occupation which traditionally and customarily received tips, including—
      • cosmetology,
      • hospitality,
      • food and beverage service,
      • parking attendants, and
      • custodial service.