To improve specific employee protections, U.S. Rep. Steve Womack (R-AR) on March 14 sponsored legislation that would amend the Fair Labor Standards Act (FLSA) of 1938 to revise the definition of the term “tipped employee.”
“More financial uncertainty is the last thing restaurant workers want. With crushing inflation and a faltering economy, the Biden administration’s heavy-handed compliance rules only add to the burden being put on hard-working Americans,” Rep. Womack said. “Servers don’t need the federal government skimming their pay more. Our bill brings much-needed certainty to tipped employees by protecting their income and job opportunities.”
The Tipped Employee Protection Act of 2023, H.R. 1612, which Rep. Womack introduced alongside original cosponsor U.S. Rep. Pete Sessions (R-TX), would provide additional clarity and simplicity in categorizing individuals as tipped employees, and would restrict judges or the administration to set arbitrary limits or requirements in classifying the hours or duties that a tipped employee performs, according to a bill summary provided by the lawmakers.
Additionally, H.R. 1612 would preserve the tipped wage and 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, and retain the ability of states under the FLSA to set wages higher than the federal statutory minimum, meaning that any state could continue to independently set the wage, the summary says.
The National Restaurant Association and the Arkansas Hospitality Association endorsed the bill, which has been referred to the U.S. House Education and the Workforce Committee for consideration.
U.S. Sen. Mike Braun on March 14 also sponsored the same-named S. 781 in his chamber.