The federal minimum wage for tipped workers is $2.13 an hour, but they must make at least the federal hourly minimum wage of $7.25 or their employers have to cover the difference. Many states and municipalities have higher minimum wages and minimum tipped wages, while some states have eliminated lower minimum wages for tipped workers.
The Culinary Workers Union Local 226 in Nevada said it supports ending taxes on tips for service and hospitality workers, as well as raising the federal minimum wage.