SenateNo users have recorded support or opposition for this bill yet. Be the first.
Summary Provided by Congressional Research Service
Tipped Employee Protection Act
This 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 available text
1. Short title
This Act may be cited as the "Tipped Employee Protection Act".
2. Tipped employees
Section 3(t) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(t)) is amended—
(1) by striking "(t)" and inserting "(t)(1)";
(2) by striking "engaged in an occupation in which he customarily and regularly receives more than $30 a month in tips." and inserting ", without regard to the duties of the employee, who receives tips and other cash wages for a work period described in paragraph (2) at a rate that, when combined with the cash wage required under subsection (m)(2)(A)(i), is not less than the wage in effect under section 6(a)(1)."; and
(3) by adding at the end the following:
(2) A work period described in this paragraph is a work period that is determined by the employer of the employee, such as a work period of 1 day, 1 week, every 2 weeks, every 28 days, or every pay period.
December 30, 2025Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed