The TIPS Act will Eliminate the Subminimum Tipped Wage. In 1991, the Fair Labor Standards Act was amended to increase the federal tipped minimum wage to $2.13 an hour, and it has not been changed since.
Eliminate the federal subminimum tipped wage.
Occurrences
H.R. 1314 - TIPS Act ... To amend the Fair Labor Standards Act of 1938 to eliminate the separate minimum wage for tipped employees, and for other purposes.
Evidence
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Mr. Horsford introduced H.R. 7577 on February 13, 2026. The bill would amend FLSA section 3(m) so that the wage required for a tipped employee is the wage in section 6(a)(1), with tips retained by the employee.
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The Department of Labor’s July 1, 2026 tipped-wage table lists the federal FLSA minimum cash wage for tipped employees as $2.13, with a $5.12 maximum tip credit against a $7.25 minimum wage.
Assessments
The promised federal outcome has not been delivered: as of the Department of Labor's July 1, 2026 tipped-wage materials, the FLSA still permits a $2.13 tipped cash wage with a $5.12 tip credit against the $7.25 federal minimum wage. Horsford did take a concrete same-term legislative step by introducing H.R. 7577 in February 2026 to eliminate the lower tipped wage, but the record shows introduction and committee referral rather than enactment. That supports a failed serious effort, not fulfillment.