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Tipped Worker Protection: Ending Subminimum Wage and New Tip Rules.

This bill aims to gradually raise the minimum wage for tipped employees to match the general minimum wage. It also establishes clear rules for retaining and sharing tips, ensuring employees receive the full amounts and employers cannot keep or use them for transaction fees. These changes are intended to improve the financial conditions of tipped workers and increase transparency in tip management.
Key points
Gradual increase of tipped employee minimum wage to match the standard minimum wage.
Employers are prohibited from keeping tips or using them for transaction fees.
Rules for establishing and managing employee-led tip pooling systems are introduced.
Mandatory disclosure to customers about service charges and prompt payment of these to employees.
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Additional Information
Print number: 118_HR_5369
Sponsor: Rep. Hayes, Jahana [D-CT-5]
Process start date: 2023-09-08