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Tipped Employee Protection Act

12/15/2023, 3:55 PM

Summary of Bill HR 1612

Bill 118 HR 1612, also known as the Tipped Employee Protection Act, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to protect tipped employees, such as restaurant servers and bartenders, from having their tips taken by their employers.

The bill aims to ensure that tipped employees receive all of the tips that they earn and that these tips are not used to supplement the wages of non-tipped employees. It also seeks to prevent employers from engaging in tip pooling arrangements that unfairly distribute tips among employees.

Additionally, the Tipped Employee Protection Act includes provisions that require employers to provide clear and transparent information to employees about how tips are distributed and ensure that employees have the right to retain all tips that they receive. Overall, this bill is designed to protect the rights of tipped employees and ensure that they are fairly compensated for their work. It is currently being debated in Congress and has garnered support from various labor advocacy groups.

Congressional Summary of HR 1612

Tipped Employee Protection Act

This bill modifies the definition of a tipped employee under the Fair Labor Standards Act of 1938 to exclude consideration of an employee's duties when determining the combined amount of tips and direct wages an employee receives for the purpose of an employer meeting the minimum wage requirements.

Under the bill, an employer may pay a tipped employee the tipped minimum wage for tasks that are not related to tipped work as long as the employee's combined tips and direct wages total at least the $7.25 federal minimum wage.

Current Department of Labor rules prohibit an employer from paying the tipped minimum wage for tasks that are not related to tipped work.

Current Status of Bill HR 1612

Bill HR 1612 is currently in the status of Bill Introduced since March 14, 2023. Bill HR 1612 was introduced during Congress 118 and was introduced to the House on March 14, 2023.  Bill HR 1612's most recent activity was Referred to the House Committee on Education and the Workforce. as of March 14, 2023

Bipartisan Support of Bill HR 1612

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
4
Democrat Cosponsors
0
Republican Cosponsors
4
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 1612

Primary Policy Focus

Labor and Employment

Alternate Title(s) of Bill HR 1612

Tipped Employee Protection Act
Tipped Employee Protection Act
To amend the Fair Labor Standards Act of 1938 to revise the definition of the term "tipped employee", and for other purposes.

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