The Tipped Income Protection and Improvement Act of 2026 aims to improve the financial situation of tipped workers and make changes to tax deductions related to tips. The main goal is to ensure that tipped employees receive a fair minimum wage and to provide clearer guidelines for tax deductions on tips. One of the key provisions of the Act is that it adjusts the minimum wage for tipped workers. Under the new rules, tipped employees will receive the same minimum wage as other workers, and they will keep all the tips they earn.