U.S. Rep. Steve Womack (R-AR) on Tuesday unveiled a bicameral bill that intends to help streamline regulations for America’s tipped employees.
The Tipped Employee Protection Act of 2022, H.R. 9523, which Rep. Womack sponsored on Dec. 13, would clarify the definition of tipped employee and relieve reporting burdens that the congressman says are harming the restaurant community. U.S. Sen. Mike Braun (R-IN) on the same day sponsored the same-named S. 5241 in his chamber.
“The consequences of this Biden administration rule include layoffs and cut wages,” Rep. Womack said. “With an ailing economy and soaring inflation, the heavy hand of the federal government clawing into the pay of hard-working Americans is the last thing restaurant workers need.
“Our bill brings much-needed certainty to servers by protecting their income and job opportunities,” added Rep. Womack.
Specifically, the bill would amend the definition in the Fair Labor Standards Act of 1938 (FLSA) for a tipped employee by removing interpretive language (customarily and regularly), and provide more clarity in categorizing individuals as tipped employees, according to a bill summary provided by the lawmakers.
If enacted, the bill also would restrict the ability of judges or the administration to set arbitrary limits or requirements in classifying the hours or duties that a tipped employee performs. The bill also would preserve the tipped wage, as well as the protection in the FLSA that tipped employees receive at least the minimum wage between the addition of an employer-paid cash wage of $2.13 and tips, the summary says.
For instance, if an individual’s tips do not reach the applicable minimum wage under that formula, the employer would still be required to pay any difference.
The measure also would retain the ability of states under the FLSA to set wages higher than the federal statutory minimum, according to the summary.
“The Biden administration’s confusing compliance rule creates an unnecessary reporting burden for restaurants that are already going through a difficult time,” Sen. Braun said. “This legislation will help streamline regulations for tipped employees so that restaurants and their workers can thrive.”