Tipped Employee Protection Act
Tipped Employee Protection Act
Plain Language Summary
# Tipped Employee Protection Act Summary **What the bill would do:** This bill would change how the federal government defines a "tipped employee" under wage laws. Currently, tipped employees can be paid below the federal minimum wage ($7.25/hour) as long as their tips make up the difference and they reach minimum wage overall.
The bill would expand the definition to include any worker who receives tips, regardless of what job duties they perform, as long as their total cash wages and tips equal at least the federal minimum wage over a work period set by their employer. **Who it affects:** The bill primarily affects workers who receive tips—including servers, bartenders, delivery drivers, and other service industry employees. It could also potentially affect employers in restaurants, bars, hotels, and other businesses where tipping is common. **Current status:** The bill was introduced by Representative Steve Womack (R-AR) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.
CRS Official Summary
Tipped Employee Protection ActThis bill modifies the definition of a tipped employee under the Fair Labor Standards Act of 1938 (FLSA) to exclude consideration of an employee's duties when determining if the employee is a tipped employee. Under current law, tipped employees may be paid less than the federal minimum wage (currently $7.25 an hour), but the total of their cash wage and tips must be at least equal to the federal minimum wage. Under the FLSA, a tipped employee is currently a worker who customarily and regularly receives more than $30 a month in tips.The bill broadens the definition of tipped employee to include any worker who receives tips and other cash wages for a work period at a rate that is at least the federal minimum wage, without regard to the duties of the employee. Under the bill, the work period is a work period that is determined by the employer.
Latest Action
POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.