The Tipped Employee Protection Act updates the rules for who qualifies as a tipped employee, ensuring they earn at least the minimum wage when tips are included. This is important for improving pay stability for workers in industries like restaurants and hospitality.
Tipped Employee Protection Act This bill modifies the definition of a tipped employee under the Fair Labor Standards Act of 1938 (FLSA) to exclude consideration of an employee's duties when determining if the employee is a tipped employee. Under current law, tipped employees may be paid less than the federal minimum wage (currently $7.25 an hour), but the total of their cash wage and tips must be at least equal to the federal minimum wage. Under the FLSA, a tipped employee is currently a worker who customarily and regularly receives more than $30 a month in tips. The bill broadens the definition of tipped employee to include any worker who receives tips and other cash wages for a work period at a rate that is at least the federal minimum wage, without regard to the duties of the employee. Under the bill, the work period is a work period that is determined by the employer.