No Tax on Tips Act

HB 1400, the "No Tax on Tips Act," requires restaurants and food service businesses to clearly disclose service fees (including their amount and whether they go to employees) on menus or visibly before ordering. It prohibits employers from counting tips toward meeting minimum wage requirements for tipped workers, ensuring they receive the full minimum wage without tip credits. Additionally, the bill allows tipped employees to subtract qualified tips from their state income tax bill (effectively making tips tax-free) and provides businesses a tax credit for wages and tips paid to employees. This directly affects tipped workers in restaurants and similar establishments, as well as the businesses that employ them.