Tipped Employee Protection Act

Sponsor: Steve Womack (Republican-AR)March 24, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.

Federal rules for who counts as a 'tipped employee' would change under this bill.

Federal rules for who counts as a 'tipped employee' would change under this bill. This bill would remove the current rule that workers must regularly receive over $30 a month in tips to be considered tipped. Instead, a tipped employee would be defined by whether their total tips and cash wages meet the federal minimum wage over a work period set by their employer, regardless of their specific job duties.

What Would Change

Today, federal law defines a 'tipped employee' as someone who regularly receives more than $30 a month in tips. This bill would remove that $30-a-month rule. Instead, a worker would be considered a 'tipped employee' if their total tips and the cash wage paid by their employer meet at least the federal minimum wage. This combined total would be calculated over a work period set by the employer, and the rule would apply regardless of specific job duties.

Key Provisions

Removes the current rule that says a worker must regularly get more than $30 a month in tips to be considered a 'tipped employee'.
Defines a 'tipped employee' as someone whose total tips and cash wages, combined, meet the federal minimum wage.
Lets employers decide the work period (like a day, a week, or a pay period) over which they calculate if a worker's combined tips and wages meet the minimum wage.
Clarifies that a worker's specific job duties would no longer be a factor in deciding if they are a 'tipped employee'.