HR 8427 — Tipped Worker Protection Act

Summary

Tipped Worker Protection Act This bill increases the minimum wage for tipped employees over a phase-in period and provides a process for employers to pool and distribute tips.

Bill Text

• Introduced Introduced in House Current html July 19, 2022

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill repeals the separate minimum wage for tipped employees, establishing that they must receive the standard minimum wage instead.

• 29 U.S.C. 203(m)(2)(B)

  In determining the wage an employer is required to pay a tipped employee, → The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1).

  This change eliminates the separate minimum wage for tipped employees and defines their wage as the same as the general minimum wage.

• 29 U.S.C. 203(m)(2)(C)

  Regardless of whether or not an employer takes a tip credit, the employer → An employer

  This change simplifies the language regarding the employer's obligations concerning tips.

• 29 U.S.C. 203(t)

  he customarily and regularly receives more than $30 a month in tips → the employee customarily and regularly receives for each month an amount in tips equal to (or in excess of) the difference between the total cash wages paid to the employee under subsection (m)(2)(A)(i) for such month and the total wages that would have been paid to the employee for the hours worked in such month pursuant to the minimum wage in effect under section 6(a)(1) but for subsection (m)(2), except that an employee shall not be considered a 'tipped employee' for any workweek in which the employee spends more than 20 percent of the employee's hours of employment performing duties related to the employee's occupation for which the employee does not directly receive tips.

  This change redefines who qualifies as a tipped employee, basing it on cash wages and hours worked instead of just tips received.

• 29 U.S.C. 216(b)

  the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employee → the sum of all such tips unlawfully used or kept by the employee

  This change alters the penalty structure regarding unlawfully kept tips to focus on tips unlawfully used or kept by employees.

• 29 U.S.C. 216(c)

  the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employee → the sum of all such tips unlawfully used or kept by the employee

  This change clarifies that violations regarding tips focus on unlawful use rather than just unlawful retention.

• 29 U.S.C. 203(m)(2)(C)

  of this subsection → of this subsection. Any employee shall have the right to retain, regardless of whether received as part of a system to pool tips established in accordance with subparagraph (C), any tips received by such employee.

  This change reinforces the right of employees to retain all tips received, regardless of tip pooling arrangements.

• 29 U.S.C. 203(m)(2)

  Tip includes any discretionary amount paid directly to an employee by a customer and any portion of a mandatory charge imposed on a customer by the employer which is added to the cost of the product or service in any manner that may reasonably lead the customer to believe that the amount collected by the employer from such charge will be paid in full directly to the employee.

  This addition clarifies the definition of a 'tip' to include discretionary payments and mandatory charges perceived as tips.

• 29 U.S.C. 203(m)(2)(C)

  Regardless of whether or not an employer takes a tip credit, the employer may not keep tips received by its employees for any purpose or use such tips for any purpose other than to facilitate the distribution to employees of the full amount of all such tips under a system to pool tips established in accordance with subparagraph (D).

  This change prohibits employers from using tips for their own purposes and mandates their full distribution to employees.

Action History

1. July 19, 2022

   Introduced in House

2. July 19, 2022

   Introduced in House

3. July 19, 2022

   Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

4. July 19, 2022

   Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsors

• Jahana Hayes · Primary

Subjects