Federal bill couples ending taxes on tips with banning sub-minimum wage

<p>Democrats in Nevada push bill that would provide further relief for tipped workers who can be paid as little as $2.13</p><p>Donald Trump began the second term of his presidency last month with a victory lap at a <a href="https://www.youtube.com/watch?v=OXo-XBvMAUQ">rally</a> in Las Vegas, Nevada, a key swing state he <a href="https://www.nbcnews.com/politics/2024-election/trump-wins-nevada-election-2024-harris-rcna173818">flipped</a> in 2024, by reaffirming his campaign promise to pass a proposal to abolish taxes on tips.</p><p><a href="https://horsford.house.gov/media/editorial/nevada-is-the-gold-standard-for-wages">Nearly 6 million workers </a>around the US rely on tips for most of their income. Under federal law, tipped workers can be paid as little as $2.13 an hour, a minimum that <a href="https://www.nelp.org/app/uploads/2015/03/tippedworkers2009.pdf">has not changed</a> since 1991. Only <a href="https://www.dol.gov/agencies/whd/state/minimum-wage/tipped">seven states</a>, Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington, have banned the sub-minimum wage for tipped workers.</p> <a href="https://www.theguardian.com/business/2025/feb/25/nevada-end-taxes-on-tips">Continue reading...</a>