Horsford’s TIPS Act Seeks to Uplift Service Workers by Eliminating Subminimum Wage

Congressman Steven Horsford (NV-04) has introduced a groundbreaking bill to end the subminimum wage for tipped workers and remove taxes on tips, aiming to provide economic justice for millions.

In an ambitious legislative push, Congressman Steven Horsford unveiled the Tipped Income Protection and Standards (TIPS) Act, a measure designed to eliminate the subminimum wage and abolish the income tax on tips for tipped workers. The bill addresses the widespread reliance on customer gratuities to meet federal minimum wage requirements, a practice that leaves many workers, especially women and people of color, in financial precarity.

A Broken Wage System for Millions

Under current federal law, tipped workers in many states are paid as little as $2.13 an hour, a rate significantly lower than the federal minimum wage of $7.25. In theory, tips from customers should bridge this wage gap, but for over 4 million workers in industries like food service, bartending, and hospitality, this system often results in erratic and insufficient income.

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