News & Analysis as of

Tips Wage and Hour

Haynes Boone

IRS Releases Draft 2026 Form W-2 with Overtime and Tips Compensation

Haynes Boone on

The IRS has published a draft of the 2026 Form W-2, which incorporates above-the-line tax deductions for “qualified tips” and “qualified overtime compensation,” as recently established by the One Big Beautiful Bill Act....more

Jackson Lewis P.C.

[Event] Workplace Horizons Extension: Chicago - September 18th, Chicago, IL

Jackson Lewis P.C. on

The leading educational and networking event — from the premier firm for employment + labor law — comes closer to you regionally and topically. The benefits of Jackson Lewis’ annual Workplace Horizons conference in New...more

Amundsen Davis LLC

National State Employment Law Update – Changes to Look Out for in the Second Half of 2025

Amundsen Davis LLC on

As employers keep their eye on compliance, below are some notable employment law changes that will be effective in the coming months. Arkansas - Effective August 4, 2025 - Senate Bill 598 (S.B. 598) requires an employer or...more

Conn Maciel Carey LLP

[Event] In-Person Breakfast Briefing: Wage & Hour Update - September 17th, Washington, DC

Conn Maciel Carey LLP on

Navigating wage and hour compliance is more complex than ever. This complimentary, interactive in-person briefing goes beyond the basics to explore the real-world challenges employers are facing today. Led by our dedicated...more

McGlinchey Stafford

Employment Pulse (August 2025 Edition)

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McGlinchey’s Employment Pulse showcases thought leadership from our team of experienced labor and employment attorneys, providing timely insights that help employers stay competitive, meet regulatory requirements, and tackle...more

McGlinchey Stafford

Tax Deductions on Tips and Overtime Under Trump Tax Plan

McGlinchey Stafford on

On July 4, 2024, President Trump signed the “Big Beautiful Bill,” which contains two provisions that provide federal income tax deductions on both tips and overtime compensation beginning January 1, 2025, through December 31,...more

Vedder Price

One Big Beautiful Bill Act’s No Tax On Tips and Overtime Provisions Prompt Important Questions and Considerations for Both...

Vedder Price on

On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law. The expansive federal tax and spending bill contains two provisions touching on extant wage and hour law that may have...more

Husch Blackwell LLP

Important New Reporting Rules for Overtime Pay and Tipped Income

Husch Blackwell LLP on

With the passage of the new federal tax bill on July 4, 2025, unofficially referred to as the One Big Beautiful Bill Act (OBBBA), employers and employees in overtime-heavy and tipped industries face new opportunities and...more

Keating Muething & Klekamp PLL

Two Big Beautiful Tax Deductions: What Employers Need to Know

On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill” into law. Among its sweeping provisions are two significant changes for wage and hour compliance that employers should be aware of: the creation of...more

Rumberger | Kirk

The “Big Beautiful Bill” & Potential FLSA Pitfalls: What Employers Need to Know on “No Tax on Tips & Overtime” Provisions

Rumberger | Kirk on

On July 4, 2025, as part of the One Big Beautiful Bill Act (Act), provisions titled “No Tax on Tips” and “No Tax on Overtime” were signed into law. These provisions created new individual income tax deductions for qualified...more

McAfee & Taft

New law offers "big beautiful" federal tax deductions on tips and overtime

McAfee & Taft on

On July 4, 2025, President Trump signed the “One Big Beautiful Bill” (OBBB) into law, which contains two key provisions that are likely to be very popular with employees. Those provisions provide federal income tax deductions...more

Blank Rome LLP

What the New Tax Treatment of Overtime Pay and Tips Means to Employers

Blank Rome LLP on

The One Big Beautiful Bill (“OBBB”), signed by President Trump on July 4, 2025, allows workers (subject to dollar and income limitations) to deduct, on their U.S. federal income tax return, overtime payments and tips that...more

Ballard Spahr LLP

President Trump’s Budget Extends His 2017 Individual Tax Provisions

Ballard Spahr LLP on

President Trump signed into law what is commonly referred to as the One Big Beautiful Bill Act (OBBBA), extending provisions from the Tax Cuts and Jobs Act of 2017 otherwise set to expire at the end of this year. The new...more

Seyfarth Shaw LLP

1 Big Bill + 2 New Deductions = Multiple New Challenges

Seyfarth Shaw LLP on

The freshly enacted “One Big Beautiful Bill” introduces two above-the-line tax deductions for tips and overtime wages. While these deductions offer potential savings for eligible workers, they come with new compliance...more

Fisher Phillips

How Will Employers Be Impacted by the Big Beautiful Bill? A Recap of Key Workplace Provisions in The New Federal Budget

Fisher Phillips on

Don’t have the energy to slog through the 1,127 (or so) pages of the legislative text, amendments, and explanatory materials that comprise the final version of the “Big Beautiful Bill” to see how it impacts labor and...more

Conn Maciel Carey LLP

The One Big Beautiful Bill’s Overtime and Tax Provisions – Employer Consequences

Conn Maciel Carey LLP on

As we await the House of Representatives’ vote on the One Big Beautiful Bill, let’s highlight two key provisions that may soon impact employers and employees alike. The Senate bill under consideration before the House of...more

Fisher Phillips

Where Do We Stand? An Action Plan for Employers on Tip Credit Compliance and the 80/20 Rule

Fisher Phillips on

Many employers in hospitality and other service industries take the tip credit toward their minimum wage obligation under federal wage and hour law – but complying with evolving rules has been challenging in recent years....more

Benesch

No Tax on Tips! What President Trump’s Promise May Mean for Your Business

Benesch on

If you’re a political nerd like me, you may have observed then-candidate and now President Donald J. Trump’s pledge to eliminate taxes on tips. In fact, he doubled down on this promise in his speech to Congress on March 4,...more

Burr & Forman

Are Overtime Wages and Tips Exempt From Income Tax? What Employers Need to Know to Prepare

Burr & Forman on

Join Carlton Hilson and Amy Jordan Wilkes as they discuss the recent proposals that aim to eliminate federal taxes on overtime pay and tips and what this means for employers....more

Epstein Becker & Green

Time is Money: A Quick Wage-Hour Tip on … DOL Confirms Managers Are Blocked from Tip Pool Even When Working in Non-Supervisory...

Epstein Becker & Green on

Section 3(m)(2)(B) of the FLSA prohibits employers, including managers or supervisors, from keeping any portion of an employee’s tips. Accordingly, the law has been clear that a manager or supervisor cannot participate in a...more

ArentFox Schiff

Navigating New DOL Opinion Letters: Implications for Tip Pooling and Coordinating Paid Family Leave Benefits With FMLA Leave

ArentFox Schiff on

On January 14, the US Department of Labor’s (DOL) Wage and Hour Division (WHD) published two opinion letters, FLSA2025-1, which addresses tip pooling under the Fair Labor Standards Act (FLSA), and FMLA2025-1-A, which provides...more

Nilan Johnson Lewis PA

Department of Labor: Managers Must Keep Their Fingers Out of the Tip Jar – Even When They Helped Earn the Tips

Nilan Johnson Lewis PA on

The DOL Wage & Hour Division issued its first Opinion Letter of 2025 (FLSA2025-1) on January 14, 2025, stating that managers and supervisors, no matter their duties during a particular shift, cannot participate in employee...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOL Clarifies That Managers and Supervisors Can’t Wear Two Hats When It Comes to Tips

On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” ...more

Littler

New Minimum Wage Takes Effect in Boulder, Colorado

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The City of Boulder has enacted its own local minimum wage ordinance, which took effect January 1, 2025, setting the city’s minimum wage at $15.57 per hour. The new law adds another challenge to multi-jurisdiction compliance...more

Epstein Becker & Green

Many State and Local Minimum Wages Increased on January 1, 2025

Once again, we rang in the new year with a great many state and local minimum wage increases. This year, 23 states—and several counties and cities—will increase their minimum wages and, where applicable, tipped minimum...more

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