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HB 479

Income tax; allow for tax credits in excess of the amount that can be claimed in a given year to be carried forward to subsequent years

2025-2026 Regular Session Introduced by Kasey Carpenter and 5 co-sponsors

HB 479 clarifies tip credit regulations for minimum wage, impacting service industry employees and requiring employers to adjust payroll practices for compliance.

House Second Readers
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Bill Summary · HB 479

Summary of Bill HB 479: Relating to the Tip Credit

Overview

Bill Number: HB 479
Title: Relating to the Tip Credit
Status: Introduced and Pass First Reading
Introduced Date: January 17, 2025
Classification: Bill
Subject Areas: Department of Labor and Industrial Relations (DLIR), Employment, Minimum Wage, Tip Credit

Purpose and Intent

The primary purpose of HB 479 is to address the regulations surrounding the tip credit in the context of minimum wage laws. The bill aims to clarify how tips can be used to satisfy minimum wage requirements for employees in service industries, such as restaurants and hospitality.

Key Provisions

While the specific text of the bill is not provided, the following are anticipated provisions based on the subject matter:

  • Tip Credit Definition: The bill may define the parameters of the tip credit, including how much of an employee's wages can be supplemented by tips.
  • Minimum Wage Compliance: It is expected to outline how employers can legally apply the tip credit to meet minimum wage obligations.
  • Reporting Requirements: The bill may introduce or modify reporting requirements for employers regarding tips received by employees.
  • Employee Rights: Provisions may be included to protect employees from wage theft or miscalculation of tips.

Affected Parties

  • Employees: Workers in the service industry who rely on tips as a significant portion of their income will be directly affected by any changes to the tip credit regulations.
  • Employers: Businesses that employ tipped workers will need to adjust their payroll practices to comply with the new regulations established by this bill.
  • Department of Labor and Industrial Relations (DLIR): The DLIR will likely be responsible for enforcing the new provisions and ensuring compliance among employers.

Legislative Timeline

  • January 17, 2025: Bill introduced and pending introduction.
  • January 21, 2025: Bill referred to the Labor and Finance Committees (LAB, FIN) and passed its first reading.

Related Legislation

  • SB 604: This bill is identified as a companion bill, indicating that similar provisions may be considered in the Senate, which could lead to a more comprehensive approach to the issue of tip credits.

Conclusion

HB 479 seeks to clarify and potentially reform the use of tip credits in minimum wage calculations, impacting both employees and employers in the service industry. As the bill progresses through the legislative process, stakeholders will need to stay informed about its developments and implications for wage practices.

Compiled from official sources — confirm details with the bill’s official record.

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