To amend the Fair Labor Standards Act of 1938 to repeal the separate minimum wage for tipped employees, and for other purposes.
About This Bill
Committee
Latest Action · September 8, 2023
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Tipped Worker Protection Act would eliminate the federal tipped minimum wage and require all tipped employees to earn the same minimum wage as other workers. Currently, employers can pay tipped employees as little as $2.13 per hour if tips make up the difference, but this bill would gradually raise the tipped minimum wage starting at $3.60 per hour and increasing by $1.50 each year until it reaches the standard federal minimum wage. The legislation affects restaurants, bars, hotels, and other service industry employers who rely on tipped workforces, as well as the millions of tipped workers in these sectors. The bill also establishes strict rules requiring employers to keep all customer tips—including mandatory service charges—separate from other funds and distribute them fully to employees, while prohibiting employers from keeping tips or using them to cover payment processing fees. The changes would take effect either at the date of enactment for tip protection rules or gradually over multiple years for wage requirements, depending on when the tipped minimum wage reaches the standard minimum wage.
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