Tipped Employee Protection Act
Congress Proposes Redefining Tipped Workers to Focus on Total Pay Rather Than Specific Job Tasks
Legislative Progress
Key Points
- This bill changes the legal definition of a 'tipped employee' under federal law. Currently, the law says a worker is a tipped employee if they usually make more than $30 a month in tips. This bill would remove that specific dollar limit.
- Under the new rule, a worker is considered a tipped employee as long as their base pay plus their tips add up to at least the federal minimum wage. This would apply regardless of the specific tasks the employee does during their shift, such as cleaning or preparing food.
- Business owners would be allowed to choose the 'work period' used to check if a worker's pay meets the minimum wage. This timeframe could be a single day, a week, or a full pay period.
- This change is significant because it would likely remove current rules that limit how much time a tipped worker can spend on 'side work' (like rolling silverware) while being paid a lower tipped wage. It aims to simplify how businesses track pay for staff who perform multiple roles.
- The bill was introduced by Representative Womack and has been moved forward by a House committee for further consideration by the full House of Representatives.
Impact Analysis
Personal Impact
Unions representing hospitality and food service workers have generally opposed efforts to weaken the duties test for tipped employees. By removing protections that limit how much side work can be done at the lower tipped wage, this bill could reduce the bargaining position of unionized tipped workers and make it harder for unions to advocate for fair treatment of workers who split time between tipped and non-tipped tasks.
Milestones
POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.
On motion to recommit Failed by the Yeas and Nays: 209 - 215 (Roll no. 21).
Considered as unfinished business. (consideration: CR H694)
POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 2312, the Chair put the question on motion to recommit and by voice vote, announced the noes had prevailed. Ms. Budzinski demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
Vote Results
1 voteOn Motion to Recommit
Related News
4 articles
GOP Spikes Legislation Widening Tipped Worker Wage Loophole
House Republican leaders pulled the Tipped Employee Protection Act (H.R. 2312) from the floor after a surprise defeat on a related labor bill. The measure would have broadened the definition of 'tipped employee' and codified elements of a Trump-era rule regarding non-tipped duties.
Punching In: House GOP Pushes—Again—on Defining a Joint Employer
The House is expected to vote on the Tipped Employee Protection Act, which would adjust the standards governing who is a tipped employee and the type of work they can perform. The bill is part of a broader GOP effort to modernize the Fair Labor Standards Act and reduce regulatory whiplash.
House Tipped Worker Bill Unlikely to Affect OBBBA Deduction
Experts suggest that H.R. 2312 is primarily a labor-focused bill rather than a tax measure. While it clarifies the FLSA definition of a tipped worker by removing the $30 monthly threshold, it is unlikely to impact existing tip-related tax deductions created by previous legislation.
Source Information
Document Type
Congressional Bill
Official Title
Tipped Employee Protection Act
Data Sources
Sponsor
Cosponsors
(6)Analysis generated by AI. Always verify with official sources.