TIP Improvement Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7577 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7577 To amend the Fair Labor Standards Act of 1938 to adjust the minimum wage for tipped workers and to amend the Internal Revenue Code of 1986 to expand and make permanent the qualified tip deduction. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 13, 2026 Mr. Horsford introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To amend the Fair Labor Standards Act of 1938 to adjust the minimum wage for tipped workers and to amend the Internal Revenue Code of 1986 to expand and make permanent the qualified tip deduction. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tipped Income Protection and Improvement Act of 2026'' or ``TIP Improvement Act of 2026''. SEC. 2. MINIMUM WAGE FOR TIPPED EMPLOYEES. (a) Minimum Wage for Tipped Employees.--Paragraph (2)(A) of section 3(m) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended to read as follows: ``(2)(A) The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). All tips received by such employee shall be retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.''. (b) Penalties.--Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended-- (1) in subsection (b), by