U.S. Rep. Steven Horsford is leading a charge to eliminate the subminimum wage and taxes on tips, a move that has gained strong backing from Nevada’s influential Culinary Union. While former President Donald Trump has floated a similar idea, Horsford is making it clear his version goes further—closing loopholes and ensuring workers see real benefits. But will it gain traction in Congress?
Horsford’s Plan: A Big Shift for Tipped Workers
Horsford, a Democrat representing North Las Vegas, is pushing legislation that could significantly change how service workers are paid. His proposal aims to:
- Abolish the subminimum wage nationwide, which allows employers to pay tipped workers less than the federal minimum wage.
- Ensure tipped employees receive their full wages without relying on unpredictable customer gratuities.
- Close loopholes that could allow businesses to sidestep the changes.
Nevada has already eliminated the subminimum wage, meaning servers, bartenders, and hospitality staff in the state earn the full minimum wage before tips. But many states still operate under outdated federal rules, allowing employers to pay as little as $2.13 an hour before tips make up the difference.
Culinary Union Stands Firm Behind the Bill
The Culinary Union, representing more than 60,000 workers in Nevada’s hotel and restaurant industry, is throwing its weight behind Horsford’s plan. Union leaders argue that the current system forces workers to depend too much on customer generosity while allowing businesses to shift labor costs onto consumers.
One union representative put it bluntly: “It’s not fair that big corporations benefit from a broken system while the people who make these businesses run are left struggling.”
For Nevada workers, the fight isn’t theoretical. While the state mandates full wages for tipped workers, many employees have friends and family in other states where the subminimum wage remains a reality. The union believes a nationwide change would create a level playing field for all hospitality workers.
Will Trump’s Tip Tax Cut Survive the GOP’s Budget Battle?
Trump has been touting the idea of eliminating federal taxes on tips since last June, a proposal that’s popular among service industry employees. However, it’s unclear whether Republican lawmakers will include it in their final budget proposal—especially as they push for $4.5 trillion in tax cuts.
For now, Trump’s idea remains a talking point rather than a concrete policy. That uncertainty is one reason Horsford wants to secure a stronger worker-first alternative. “Without my bill’s provisions,” he warns, “this does not help workers, and I am going to fight like hell to defend my constituents.”
Can It Pass in a Divided Congress?
Horsford’s bill faces a tough road in Washington. Democrats generally support higher wages for service workers, but many Republicans argue that eliminating the subminimum wage could hurt small businesses that rely on tipped employees.
There’s also the broader political climate to consider. With a presidential election approaching, both parties are carefully weighing which economic policies to prioritize. Republicans may focus more on broad tax cuts than on industry-specific reforms.
For now, Nevada workers and their Culinary Union allies are watching closely. With wages and tips on the line, the outcome of this debate could have real consequences for thousands of people in the hospitality industry.
