Tipped Income Protection and Support Act eliminates separate minimum wage for tipped employees.

The Tipped Income Protection and Support Act, or TIPS Act, amends the Fair Labor Standards Act of 1938 to eliminate the separate minimum wage for tipped employees. It also introduces a tax deduction for cash tips received by employees, subject to certain conditions. The deduction is not available to individuals with an adjusted gross income exceeding $112,500. The bill further modifies the Internal Revenue Code to account for this new deduction and adjusts withholding tables accordingly. The changes apply to taxable years beginning after December 31, 2025.

Tipped Income Protection and Support Act eliminates separate minimum wage for tipped employees.

The Tipped Income Protection and Support Act, or TIPS Act, amends the Fair Labor Standards Act of 1938 to eliminate the separate minimum wage for tipped employees. It also introduces a tax deduction for cash tips received by employees, subject to certain conditions. The deduction is not available to individuals with an adjusted gross income exceeding $112,500. The bill further modifies the Internal Revenue Code to account for this new deduction and adjusts withholding tables accordingly. The changes apply to taxable years beginning after December 31, 2025.