Tipped Employee Protection Act
Source: Congress.gov ·
335 words in original text
What This Bill Does
This bill changes how the federal government defines a "tipped employee" under the Fair Labor Standards Act of 1938. The bill modifies the rules about who qualifies as a tipped worker and how employers calculate whether workers meet the legal definition.
Who It Affects
Employees who receive tips, employers who employ tipped workers, and the federal government agencies that enforce wage and hour laws.
Key Provisions
- Employers can now determine whether an employee is a tipped employee by looking at what the employee earns during a specific time period, rather than based on what occupation they work in (Sec. 2)
- An employee counts as a tipped employee if their tips and cash wages combined equal at least the federal minimum wage during the measurement period (Sec. 2)
- Employers can choose how often to measure whether an employee meets the tipped employee definition: daily, weekly, every other week, each pay period, or monthly (Sec. 2)
What Changes
The old rule said someone was a tipped employee if they regularly earned more than $30 per month in tips. The new rule focuses on whether an employee's tips plus their regular cash wage meet the federal minimum wage during a period the employer selects. The measurement period can range from one day to one month.
Important Definitions
None defined in this bill.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.