U.S. Rep. Steve Womack (R-AR) on Monday sponsored a proposed bill to clarify the definition of a tipped employee and relieve reporting burdens for restaurant employers.
“Hard-working restaurant owners and employees have a lot on their plate running a business and serving people. This bill makes their lives easier by preserving the hard-earned tipped wage for workers and creating a stable compliance environment for operators,” Rep. Womack said March 24. “I’m proud to support restaurants in Arkansas’ Third and across America — their work drives our economy, provides jobs, and serves our communities.”
The Tipped Employee Protection Act, H.R. 2312, would amend the Federal Labor Standards Act (FLSA) definition of a tipped employee to create a more explicit definition of the term by removing interpretive language to provide additional clarity and simplicity in categorizing individuals as tipped employees, according to a bill summary provided by Rep. Womack’s staff.
Additionally, H.R. 2312 would restrict the ability of judges or bureaucrats to set arbitrary limits or requirements in classifying the hours or duties that a tipped employee performs.
The proposed measure also would preserve the tipped wage and the protection in the FLSA for tipped employees to receive at least the minimum wage between the addition of an employer-paid cash wage of $2.13 and tips. 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 summary says.
H.R. 2312 also would 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 bill has been endorsed by the National Restaurant Association.