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Phasing out the lower minimum wage for tipped workers

This Act gradually eliminates the separate, lower minimum wage for employees who receive tips (the 'tip credit' system). This means tipped workers will eventually receive the full federal minimum wage plus their tips. It also establishes strict rules for tip pooling and prohibits employers from using tips to cover business costs, including credit card processing fees.
Key points
The minimum cash wage for tipped employees will gradually increase until it reaches the full federal minimum wage, eliminating the 'tip credit' system.
Employers are prohibited from keeping tips or using them to cover transaction fees, such as credit card processing costs.
Establishing or modifying a tip pooling system requires a vote and approval by at least 51% of non-supervisory employees.
Mandatory service charges must be clearly disclosed to customers and employees, specifying the portion that goes directly to employees.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5112
Sponsor: Rep. Hayes, Jahana [D-CT-5]
Process start date: 2025-09-03
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tipped Worker Protection Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5112.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-03.

What are the main provisions?

Key points include:

  • The minimum cash wage for tipped employees will gradually increase until it reaches the full federal minimum wage, eliminating the 'tip credit' system.
  • Employers are prohibited from keeping tips or using them to cover transaction fees, such as credit card processing costs.
  • Establishing or modifying a tip pooling system requires a vote and approval by at least 51% of non-supervisory employees.
  • Mandatory service charges must be clearly disclosed to customers and employees, specifying the portion that goes directly to employees.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Hayes, Jahana [D-CT-5].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

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