arrow_back Civic Audit
Share share

TIP Improvement Act: Full Minimum Wage and Permanent Tax Deductions

This bill ensures tipped workers receive the full federal minimum wage directly from their employers. It also makes tax deductions for tip income permanent and expands them for joint returns.
Key points
Employers must pay the full minimum wage without using tips to offset the base hourly rate.
Workers keep all their tips, though pooling tips among employees remains an allowed practice.
The tax deduction for tips is now permanent, with a $50,000 limit for joint tax returns.
Automatic gratuities in hospitality, food and beverage service, and cosmetology now count as qualified tips.
Penalties for employers will include the sum of all tips unlawfully used or kept by the employer.
article Official text account_balance Process page notifications_active Track this Bill
gavel
Status:
Introduced
Record your position for audit.
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens (explained here). Start recording it now.
Additional Information
Print number: 119_HR_7577
Sponsor: Rep. Horsford, Steven [D-NV-4]
Process start date: 2026-02-13
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-3.1-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

TIP Improvement Act of 2026

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_7577.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2026-02-13.

What are the main provisions?

Key points include:

  • Employers must pay the full minimum wage without using tips to offset the base hourly rate.
  • Workers keep all their tips, though pooling tips among employees remains an allowed practice.
  • The tax deduction for tips is now permanent, with a $50,000 limit for joint tax returns.
  • Automatic gratuities in hospitality, food and beverage service, and cosmetology now count as qualified tips.
  • Penalties for employers will include the sum of all tips unlawfully used or kept by the employer.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Horsford, Steven [D-NV-4].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-03-12.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Labor Taxes Economy