,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #gegg  ,,in ,,the ,,house ,,of  
,,representatives  ,february #ac1       
#bjbf,mr4 ,horsford introduced the      
following bill2 which was referred to   
the ,committee on ,ways and ,means1 and 
in addition to the ,committee on        
,education and ,workforce1 for a period 
to be subsequently determined by the    
,speaker1 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 #aich to adjust the  
minimum wage for tipped workers and to  
amend the ,internal ,revenue ,code of   
#aihf to expand and make permanent the  
qualified tip deduction4  #a4 ,short    
title ,this ,act may be cited as the    
,tipped ,income ,protection and         
,improvement ,act of #bjbf or ,,tip     
,improvement ,act of #bjbf4  #b4        
,minimum wage for tipped employees  7a7 
,minimum wage for tipped employees      
,paragraph 7#b77;,a7 of section #c7m7 of

 the ,fair ,labor ,standards ,act of    
#aich 7#bi ,u4,s4,c4 #bjc7m77#b77;,a77  
is amended to read as follows3  7#b7    
7,a7 ,the wage required to be paid to a 
tipped employee shall be the wage set   
forth in section #f7;a77#a74 ,all tips  
received by such employee shall be      
retained by the employee1 except that   
this subsection shall not be construed  
to prohibit the pooling of tips among   
employees who customarily and regularly 
receive tips4  4  7b7 ,penalties        
,section #af of the ,fair ,labor        
,standards ,act of #aich 7#bi ,u4,s4,c4 
#baf7 is amended-- 7#a7 in subsection   
7b71 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
 employer2 and  7#b7 in subsection 7c71 
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 employer4
  #c4 ,qualified tip deduction made     
permanent and expanded  7a7 ,increased  
deduction limit for joint return        
,section #bbd7;b77#a7 of the ,internal  
,revenue ,code of #aihf is amended by   
inserting 7twice such amount in the case
 of a joint return7 after #be1jjj4  7b7 
,prevention of waste1 fraud1 and abuse  
,section #bbd7;d77#b7 of such ,code is  
amended-- 7#a7 in subparagraph 7,b71 by 
striking and at the end1  7#b7 in       
subparagraph 7,c71 by striking the      
period at the end and inserting a comma1
 and  7#c7 by inserting after           
subparagraph 7,c7 the following new     
subparagraphs3  7,d7 such amount is paid
 by a person who does not bear a        
relationship to such individual         
described in section #bfg7;b71 and  7,e7
 such individual does not have an       
ownership stake in the business which   
employs them in the job for which such  
individual is receiving a tip4  4  7c7  
,,tin requirement ,section #bbd7;e7 of  

such ,code is amended to read as        
follows3  7e7 ,taxpayer identification  
number required ,no deduction shall be  
allowed under this section unless the   
individual includes such individual's   
taxpayer identification number 7in the  
case of a joint return1 the taxpayer    
identification number of at least #a    
spouse7 on the return of tax for the    
taxable year4  4  7d7 ,automatic        
gratuities treated as qualified tips for
 certain professions ,section #bbd7;d7  
of such ,code is amended by adding at   
the end the following new paragraph3    
7#d7 ,treatment of automatic gratuities 
7,a7 ,in general ,in the case of an     
individual engaged in an occupation in  
hospitality1 food and beverage service1 
or cosmetology1 the term qualified tips 
shall include an automatic gratuity4    
7,b7 ,automatic gratuities ,for purposes
 of this paragraph1 the term automatic  
gratuity means1 with respect to an      
individual1 any amount which-- 7i7 would
 be a qualified tip with respect to the 

individual but for paragraph 7#b77;,a71 
and  7ii7 is a mandatory or suggested   
amount paid pursuant to a uniform policy
 of the employer1 under which such      
entire amount is received by the        
individual or1 under ,state or local    
law1 is pooled and received only by     
employees of the employer under a       
tip-sharing arrangement4  4  7e7        
,deduction made permanent ,section #bbd 
of such ,code is amended by striking    
subsection 7h74  7f7 ,conforming        
amendment ,section #bbd of such ,code is
 amended by striking subsection 7f7 and 
by redesignating subsection 7g7 as      
subsection 7f74  7g7 ,effective date    
,the amendments made by this section    
shall apply to taxable years beginning  
after ,december #ca1 #bjbe4