The Tipped Employee Protection Act of 2025 would amend the Federal Labor Standards Act to remove interpretive language in the definition of a tipped employee. It also would restrict judges or bureaucrats from setting limits or requirements in classifying the hours or duties a tipped employee performs.
Tipped employees receive an employer-paid wage of $2.13 plus tips. If an employee’s tips do not reach minimum wage, the employer is required to pay the difference. States would retain the ability to set wages higher than the federal statutory minimum.
“Hardworking restaurant owners and employees have a lot on their plate running a business and serving people,” U.S. Rep. Steve Womack (R-AR), who reintroduced the bill, said. “This bill makes their lives easier by preserving the hard-earned tipped wage for workers and creating a stable compliance environment for operators.”
The bill has the support of the National Restaurant Association.
“Tipped servers and bartenders are professionals, who have chosen to build restaurant careers because their skills and knowledge mean high earning potential in a job that’s flexible to their needs,” Sean Kennedy, association executive vice president of public affairs, said.