News & Analysis as of

Tips

Krieg DeVault

IRS Releases Schedule 1‑A Providing Reporting Framework for New “No Tax” Deductions Affecting Employers and Auto Lenders

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On March 2, 2026, the Internal Revenue Service released Schedule 1‑A (Form 1040) and accompanying updates to the Form 1040 Instructions implementing several new individual tax deductions enacted under the reconciliation...more

Stokes Wagner

New OBBBA Tip and Overtime Tax Deductions - What Hospitality Employers Should Know

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The One Big Beautiful Bill Act (“OBBBA”), enacted in July 2025, temporarily eliminates taxes on qualified overtime and qualified tips through 2028. This new law is intended to reduce taxable income for hourly and tipped...more

Seyfarth Shaw LLP

New York City Enacts Various Laws Regulating App-Based Delivery Platforms

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New York City is poised to continue its aggressive regulation of online delivery platforms. Through the NYC Department of Consumer and Worker Protection (DCWP), the City already requires delivery platforms either to (1) pay...more

Jackson Lewis P.C.

OBBBA in 2026: Immediate Action Required for Employers

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H.R. 1 became law as Public Law 119-21, the “One Big Beautiful Bill Act” or “OBBBA,” on July 4, 2025. Although several of the most significant employer-facing provisions affected operations in 2025, the focus shifts to full...more

BakerHostetler

2026 Wage and Hour Nationwide Update: Key Changes That Could Affect Your Business

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2026 brings a wave of wage and hour developments that every employer needs to know. From sweeping revisions to pay transparency and equal pay laws in California to New York’s new restrictions on training reimbursement...more

Venable LLP

New IRS Guidance on Overtime and Tip Reporting Under the OBBBA

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The One Big Beautiful Bill Act (OBBBA), which President Trump signed into law in July 2025, purports to eliminate taxes on overtime and tips from 2025 to 2028. Accordingly, the OBBBA requires employers to track overtime and...more

Venable LLP

Earned Wage Access: Certain Models Fall Outside TILA and Regulation Z Under Renewed Federal Guidance

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Certain earned wage access (EWA) programs just received meaningful federal support. ...more

Foley & Lardner LLP

Updates for Overtime and Tip Reporting Obligations for 2025

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As we wrote on July 14, 2025, the One Big Beautiful Bill Act (OBBA) contains a provision providing a tax deduction for employees’ overtime income in 2025 through 2028....more

Keating Muething & Klekamp PLL

IRS Releases Additional Guidance on New Tip and Overtime Tax Deductions for 2025

On November 21, 2025, the Internal Revenue Service (IRS) issued Notice 2025-69, providing guidance and clarification on the new federal income tax deductions for employee tips and certain overtime compensation taking effect...more

Akerman LLP

IRS Rolls Out Expanded Guidance on the Big, Beautiful Tax Break on Tips and Overtime

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The new IRS guidance (Notice 2025-69) clarifies how workers can claim the One Big Beautiful Bill Act's recently enacted federal tax deductions for qualified tips and overtime pay without receiving a separate accounting from...more

Amundsen Davis LLC

IRS Announces 2025 Documentation Workarounds for Tips and Overtime Deductions (Notice 2025-69)

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W-2s and 1099s will not have new fields this year, but the IRS has now provided guidance on how employees can still claim tax deductions for tips and overtime pay. This is our fourth update on the evolving tips and overtime...more

Clark Hill PLC

Can an Employer Deduct Credit Card Costs from Employee Tips?

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These days, a lot of restaurant customers pay for food and drinks with a credit card, and they often leave a tip by credit card, rather than leaving cash. Credit card companies usually charge restaurant owners transaction...more

Tucker Arensberg, P.C.

Understanding the New Federal Tax Deductions for Tips and Overtime Pay in the Hospitality Industry

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The U.S. Congress’s passage of the One Big Beautiful Bill Act (H.R. 1 of 2025) introduced several new sections to the U.S. Tax Code aimed at reducing the tax burden on workers. ...more

Haynsworth Sinkler Boyd, P.A.

2025’s Turning Point: What HR Leaders Can Learn from the EEOC and the Big Beautiful Bill

The Equal Employment Opportunity Commission (EEOC) has been unusually active in recent months, issuing significant opinions on religious accommodations and clarifying its enforcement stance on transgender discrimination. At...more

Jackson Lewis P.C.

IRS 2025 Penalty Relief: A Break for Employers under OBBBA’s Tax Reporting for Tips and Overtime

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The Internal Revenue Service (IRS) released guidance on November 5, 2025, granting employers relief from tax penalties for failing to provide employees information related to their (1) “qualified tips” and (2) “qualified...more

Quarles & Brady LLP

Limited Guidance on “No Tax on Tips” and “No Tax on Overtime” Deductions

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On September 22, 2025, the U.S. Department of the Treasury and the IRS issued proposed regulations for the “No Tax on Tips” deduction passed under the OBBB Act, and on October 23, 2025, Treasury Assistant Secretary for Tax...more

Ice Miller

Compliance Crossroads: Preparing for Ohio’s 2026 Cannabis Workforce Rules and Mitigating Wage Litigation Risks

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Ohio’s cannabis industry may be confronted with a dual compliance challenge. On one front, the Division of Cannabis Control (DCC) recently finalized a new employee training rule, Ohio Administrative Code § 1301:18-3-10, that...more

Freeman Mathis & Gary

Third Circuit clarifies FLSA settlements: Employers can include FLSA releases in opt-out class actions

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In a closely watched decision at the intersection of wage-and-hour law and class procedure, the U.S. Court of Appeals for the Third Circuit has resolved a question that had long divided district courts: can a Rule 23 opt-out...more

Fox Rothschild LLP

Three CA Handbook Updates for 2026

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It’s time to update those handbooks for 2026 and while there are numerous new laws California employers must comply with, not all of them are, what I call, “handbook worthy.” Here are three changes I’m making to this year’s...more

Fisher Phillips

From Joint Employers to Oyster Shuckers: DOL Issues Opinion Letters on Hospitality Sector Wage Issues

Fisher Phillips on

Is an oyster shucker who works in the “front of the house” allowed to share in the tip pool? Are a hotel restaurant and related members club joint employers for overtime purposes? The US Department of Labor (DOL) recently...more

Cozen O'Connor

IRS Clarifies Requirements for “No Tax on Tips” Deduction

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On September 22, 2025, the Internal Revenue Service published a Notice of Proposed Rulemaking (NPRM), fleshing out the One Big, Beautiful Bill Act’s “no tax on tips” deduction. Among other things, the NPRM lists the...more

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your October 2025 To-Do List

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Here are the top ten items you should tackle in October 2025, based on the latest workplace law developments and upcoming critical compliance dates...more

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

IRS Unveils List of Jobs Eligible for ‘No Tax on Tips’ Deduction

On September 19, 2025, the Internal Revenue Service (IRS) unveiled proposed regulations listing nearly seventy jobs that will qualify for the new “No Tax on Tips” deduction, which was passed as part of the One Big Beautiful...more

Jackson Lewis P.C.

NYC’s Expanded Minimum Pay Protections for App-Based Grocery Delivery Workers Arrive, Bringing Varying Effective Dates + Possible...

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New York City Council members voted to override the mayor’s vetoes of bills requiring third-party app companies to pay their grocery delivery workers a minimum wage of $21.44 per hour. The bills extend an existing wage...more

Conn Maciel Carey LLP

Can Service Charges be Distributed to Independent Contractors?

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These days, restaurant bills are more confusing than ever. Even as an employment attorney in the hospitality industry, I often find myself scratching my head at the various additional service charges, automatic gratuity...more

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