Labor & Employment Law Daily Wrap Up, FEDERAL REGULATIONS—Treasury Department issues notice of proposed rulemaking on occupations included in tip tax deduction, (Sep 19, 2025)

By Brandi O. Brown, J.D.

A public hearing will be held on October 23, 2025, regarding the proposed rulemaking.

Next week, the Department of the Treasury will be publishing in the Federal Register a notice of proposed rulemaking and public hearing regarding proposed regulations that identify occupations that customarily and regularly received tips on or before December 31, 2024, and provide a definition of “qualified tips” for purposes of the income tax deduction for qualified tips. These proposed regulations affect individuals who receive tips as part of their occupation. Previously misidentified as “no tax on tips,” the OBBBA provision is an income tax deduction, not to exceed $25,000, that phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

In the entertainment and events field, it includes, among others, digital content creators; a variety of gambling establishment workers; dancers; musicians and singers; disc jockeys (except radio); entertainers and performers; ushers, lobby attendants, and ticket takers; locker room, coatroom attendants; and dressing room attendants.

Includes influencers. Commentators already have shown particular interest over the inclusion of “digital content creators,” defined as those who “produce and publish on digital platforms original entertainment or personality-driven content, such as live streams, short-form videos, or podcasts.”

Other included jobs. In the beverage and food service field, for example, the proposed rulemaking includes, among others, bartenders; wait staff; chefs and cooks; food preparation workers; fast food and counter workers; dishwashers; and bakers. In the transportation and delivery field, it includes, among others, parking and valet attendants; taxi and rideshare drivers and chauffeurs; shuttle drivers; goods delivery people; rickshaw, pedicab, and carriage drivers; and home movers. In the recreation and instruction field, it includes, among others, golf caddies; self-enrichment teachers; recreational and tour pilots; travel guides; and sports instructors. In the personal appearance and wellness field, it includes, among others, massage therapists; hairdressers; cosmetologists; manicurists and pedicurists; exercise trainers and group fitness instructors; tattoo artists and piercers; tailors; and shoe and leather workers and repairers.

It also includes individuals in the fields of personal services (such as photographers for private events, nannies, babysitters), the hospitality and guest services field (such as bellhops and maids), and home services (such as maintenance and repair workers, electricians and plumbers, and landscaping).

Comments are due within 30 days of the date of publication in the Federal Register, which is scheduled for September 22, 2025. A public hearing will be held on October 23, 2025, at 10 a.m. ET. Requests to speak, with outlines of topics, must be received within 30 days of the date of publication as well.

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