Should the legal definition of “tipped employees” be tightened?
The Tipped Employee Protection Act would amend the Fair Labor Standards Act of 1938 to redefine what constitutes a “tipped employee.” The bill would expand the legal definition to include any employee paid in tips and cash wages that is at, or exceeds, the current federal minimum wage within a time period specified by an employer. This definition would no longer consider the employee’s job duties when determining if they are a tipped employee. Sponsor: Rep. Steve Womack (Republican, Arkansas, District 3)
View full bill text ➔
How do you feel?
Oppose
Support
Opponents say
• "H.R. 2312, the Tipped Employee Protection Act, would broaden the definition of "tipped employee" by allowing employers to classify workers as tipped subminimum wage employees if they receive any amount of tips over an employer-selected period, ranging from daily to monthly. Replacing the long-standing "customarily and regularly" standard with employer-selected time frames would make pay less predictable and increase the potential for underpayment or inconsistent wage practices, particularly in an industry that already includes many of the lowest paid occupations and where tips fluctuate from shift to shift." Source: AFL-CIO
• "Under the guise of "relieving reporting burdens that harm the restaurant industry," this bill would allow employers to misclassify millions of W-2 workers into tipped workers earning subminimum wage. As of 2018, the restaurant industry grossed over $825 billion in sales, yet held 8 of the 15 lowest paid occupations in the country, seven of which are tipped subminimum wage workers." Source: Center for Law and Social Policy
Proponents say
• "The bill creates a clear, common-sense definition of a tipped worker and prevents future attempts by misguided, activist judges and bureaucrats seeking to implement policies that hurt workers’ bottom lines…H.R. 2312 puts more money back in workers’ pockets and eases the burden on employers by removing needless federal regulations." Source: Rep. Tim Walberg (Republican, Michigan, District 5), Chairman of the House Committee on Education and Workforce
• "This legislation would serve as a barrier to both bureaucrats and ideological judges from setting arbitrary and unworkable requirements in classifying the hours or duties that a tipped employee performs. It also extends deference to the states in setting wages that are higher than the statutory minimum. Safeguarding the tipped wage of workers while creating a secure environment of compliance for operators is indeed a win-win scenario for everyone." Source: Rep. Virginia Foxx (Republican, North Carolina, District 5), Chairwoman of the House Rules Committee
• "Small businesses in the hospitality and service sectors have long called for predictable rules that reflect how tipped employment actually works and to allow employers and their teams to work productively without fear of arbitrary enforcement. H.R. 2312 delivers much-needed certainty for small businesses while protecting workers’ ability to earn more through tips. The bill also curbs regulatory overreach by preventing courts and government bureaucrats from imposing unnecessary restrictions that disrupt workplace flexibility and threaten take-home pay." Source: SBE Council
- House Education and Workforce Committee Considers Womack’s Legislation to Protect Tipped Workers (Press Release)
- Tip Regulations under the Fair Labor Standards Act (Department of Labor)
- Minimum Wages for Tipped Employees Across U.S. States (Department of Labor)
- Rep. Steve Womack’s Largest Donors (OpenSecrets)
