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 (a law that sets minimum wage and other worker protections). The bill rewrites the definition to focus on whether tips combined with cash wages reach the minimum wage, rather than on how much a worker typically earns in tips.
Who It Affects
Tipped employees (workers who receive tips as part of their pay) and their employers.
Key Provisions
• The definition of a tipped employee now applies to anyone who receives tips and cash wages that together equal at least the federal minimum wage, regardless of what job duties the employee performs (Sec. 2).
• Employers can measure whether an employee qualifies as tipped over different time periods: one day, one week, every other week, each pay period, or one month (Sec. 2).
What Changes
The old definition said a tipped employee was someone who "customarily and regularly receives more than $30 a month in tips." The new definition removes that $30 monthly threshold and instead requires that tips plus required cash wages together meet the federal minimum wage amount. Employers now get to decide which time period to use when checking if an employee meets this combined wage requirement.
Important Definitions
None defined in the bill text.
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.