The Issue
The hospitality industry is a cornerstone of the American economy, employing 15.5 million people and generating $1.1 trillion annually. At the heart of this sector are the tipped workers—servers, bartenders, and others—who depend on tips as a significant portion of their income. However, federal taxation on tips reduces the take-home pay of these hardworking individuals, many of whom already face financial challenges due to rising living costs and stagnant base wages.
Over 2.2 million restaurant employees rely on tips, yet their earnings are taxed, disproportionately impacting lower-wage workers and creating unnecessary financial burdens. Similarly, overtime pay, a vital source of income for many in the service industry, is taxed at a higher rate, further penalizing workers who go above and beyond to support their families.
By eliminating taxes on tips and overtime pay, this petition seeks to provide immediate financial relief to service industry workers, enabling them to retain more of their hard-earned income. This initiative will not only improve worker satisfaction and retention but also support the recovery and growth of the restaurant industry, which operates on razor-thin margins and remains critical to local economies.
The "No Tax on Tips and Overtime" campaign is a collaborative effort to bring attention to this pressing issue and drive meaningful change. We invite you to stand with us in supporting the millions of tipped workers who are the backbone of the hospitality industry. Together, we can make a lasting impact on the lives of these workers and the businesses they support.
Let’s ensure a fairer future for the service industry—one where every dollar earned goes toward building stronger communities and families. Thank you for your support - TipHaus and Zaller Law Group.