A new bill has been introduced in the New Jersey State Legislature that aims to protect the tips earned by service industry workers. The proposed legislation, introduced by State Senator Vince Polistina, seeks to exempt tips from being taxed, categorizing them as gifts instead of taxable income.
"Tips are a reward for excellent customer service and workers deserve to keep their earnings," said Senator Polistina. The bill would cover a range of service industry workers, including servers, bartenders, casino dealers, hairdressers, and food delivery workers.
This is not the first time Senator Polistina has advocated for the service industry. He previously sponsored a bipartisan bill that made temporary COVID laws permanent, allowing restaurants and certain alcoholic beverage retailers to use adjacent outdoor spaces or public sidewalks. According to LocalShore, this law has been beneficial for businesses and appreciated by the public since its implementation during the COVID-19 pandemic.
The current bill on tips is now awaiting further discussion and approval in the state legislature.