23-05-2025
Tax-Free Tips? Hotels Hope Proposed Bill Will Help Fill Jobs
Hotel companies are betting that a potential federal tax break on tips could be a helpful recruitment tool to fill thousands of open positions and keep experienced workers from leaving the industry.
The U.S. Senate and House passed legislation this week that would affect the take-home pay of tipped workers, including hundreds of thousands of hotel employees who provide housekeeping, food and beverage, bellhop, and concierge services.
The topics of tips and taxes and are politically sensitive. Many of the hotel companies we reached out to didn't want to speak about it.
But here's what the industry's hope is: Tax-free tips might make the country's 2.17 million hotel jobs more appealing.
"This tax exemption is huge," said David Kong, the former CEO of BWH Group (Best Western). "I hope it will hel