Tipped Employee Protection Act
Last recorded step: none recorded yet.
Nothing scheduled on the calendars we hold.
This bill would redefine tipped employees under federal law to focus on total earnings rather than specific job duties.
What it does
This bill would modify the Fair Labor Standards Act to change how workers are classified as tipped employees by removing the consideration of specific job duties. It proposes to define a tipped employee as any worker who receives tips and cash wages at a total rate at least equal to the federal minimum wage during a work period set by the employer. This change would allow employers to apply the tipped employee wage rules regardless of the specific tasks an employee performs, provided their total compensation meets the minimum wage threshold.
Who is affected
This bill affects workers who customarily receive tips and are classified as tipped employees under the Fair Labor Standards Act. It also impacts employers who utilize the tip credit to meet federal minimum wage requirements, as it allows them to determine the work period and apply the tipped employee designation regardless of an employee's specific duties. Additionally, the legislation applies to any worker whose combined cash wages and tips for a given work period equal at least the federal minimum wage.
Key provisions
- Modification of tipped employee definition. Amends the Fair Labor Standards Act to remove the consideration of specific job duties when determining if a worker qualifies as a tipped employee.
- Broadened criteria for tipped status. Defines a tipped employee as any worker who receives tips and cash wages at a rate at least equal to the federal minimum wage during a specific work period.
- Employer determination of work periods. Grants employers the authority to determine the specific work period used to calculate whether an employee's total compensation meets the federal minimum wage requirements.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
This bill modifies the Fair Labor Standards Act of 1938 (FLSA) by amending the criteria used to define a tipped employee. It removes current regulatory considerations regarding an employee's specific duties, instead basing the definition on whether the worker's combined tips and cash wages meet the federal minimum wage over an employer-determined work period.
Stated purpose
The bill aims to modify the Fair Labor Standards Act by broadening the definition of a tipped employee to include any worker who receives tips and cash wages totaling at least the federal minimum wage, regardless of their specific job duties.