Referred to the Committee on Education and 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.
H.R. 5112 would eliminate the federal tipped minimum wage and require all employees to receive the same minimum wage as other workers, currently $7.25 per hour. The bill creates a transition period where tipped employees would receive a gradually increasing cash wage—starting at $3.60 per hour and rising by $1.50 annually—until it reaches the standard federal minimum wage, which would occur when the annual increase brings the wage equal to or above the federal minimum. The legislation affects millions of tipped workers in restaurants, bars, and other service industries. Additionally, the bill strengthens protections for tip ownership, prohibiting employers and managers from keeping tips except to distribute them through employee-approved tip pooling systems, and requires employers to clearly disclose to customers how any mandatory service charges will be distributed to workers.
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