House bill sponsored by Horsford seeks to raise tipped worker wages to federal standard

U.S. Rep. Steven Horsford has introduced a new bill in the U.S. House that seeks to implement more equitable wage policies and bolster tip protections for tipped workers, according to the U.S. Congress.

Introduced as H.R.7577 on Feb. 13, 2026, during the 2026 regular session of the 119th Congress, this legislation is summarized here based on the official bill text, with clarifying interpretation where necessary.

The bill would amend the Fair Labor Standards Act of 1938 to require that tipped employees receive at least the federal minimum wage. It allows employees to keep all earned tips and permits tip pooling. The proposal also modifies penalties for employers misusing or retaining tips. The legislation makes permanent and expands the qualified tip deduction under the Internal Revenue Code, raises deduction limits for joint filers, and mandates a taxpayer identification number for deduction eligibility. It also defines automatic gratuities as qualified tips in select industries, such as food service and cosmetology, and applies to taxable years beginning after Dec. 31, 2025.

Rep. Steven Horsford (Democrat-NV-4th District) was the sole sponsor of the bill.

During the current session, Horsford has sponsored 26 other bills, one of which has become law.

Congressional bills may originate in either the House or Senate, though bills involving revenue must start in the House. Once introduced, bills are sent to committees for examination, hearings, amendments and debate before moving to a vote in both chambers. If the House and Senate pass the same measure, it is sent to the president for signature or veto. Congress operates in two-year terms, with each term numbered in sequence and split into two annual sessions. Legislative procedures and official records are managed by Congress and published on Congress.gov.

Steven Horsford represents Nevada and previously served in the Nevada state senate from 2004 to 2012, including as majority leader from 2009 to 2012. He was first elected to the House for the One Hundred Thirteenth Congress in January 2013, served until January 2015, and, after an unsuccessful reelection campaign for the One Hundred Fourteenth Congress in 2014, returned for the One Hundred Sixteenth Congress and three subsequent terms starting January 2019.

He earned a Bachelor of Arts from the University of Nevada, Reno, in 2014 and is a graduate of Clark High School in Las Vegas.

Information in this report is sourced from the U.S. Congress. The original data is available here.