Washington, DC—March 24, 2025…Today, Congressman Steve Womack (AR-3) reintroduced the Tipped Employee Protection Act of 2025, legislation to clarify the definition of tipped employee and relieve reporting burdens that harm the restaurant industry.
Congressman Womack said, “Hardworking 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. I’m proud to support restaurants in Arkansas’ Third and across America—their work drives our economy, provides jobs, and serves our communities.”
Sean Kennedy, Executive Vice President of Public Affairs of the National Restaurant Association said, “Tipped workers and restaurant owners should have the confidence that the definition of their job cannot change as often as the Administration changes in Washington. 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. The current system of tipping works for them. We appreciate Rep. Womack championing tipped income workers and his ongoing support of restaurant owners and operators.”
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The legislation:
Amends the Federal Labor Standards Act (FLSA) definition of a tipped employee to create a more explicit definition of the term by removing interpretive language (customarily and regularly), providing additional clarity and simplicity in categorizing individuals as tipped employees.
Restricts the ability of judges or bureaucrats to set arbitrary limits or requirements in classifying the hours or duties that a tipped employee performs.
Preserves 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—and in many cases much more. 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.
Retains 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.