Today, Congressman Steve Womack reintroduced the Tipped Employee Protection Act of 2025. This legislation aims to clarify the definition of a tipped employee and alleviate reporting burdens that impact the restaurant industry.
“Hardworking restaurant owners and employees have a lot on their plate running a business and serving people,” said Congressman Womack. “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 at the National Restaurant Association, expressed his support: “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.”
The proposed legislation seeks several changes:
– It amends the Federal Labor Standards Act (FLSA) definition of a tipped employee by removing interpretive language such as “customarily and regularly,” aiming for more clarity in categorizing individuals as tipped employees.
– It restricts judges or bureaucrats from setting arbitrary limits or requirements regarding hours or duties performed by tipped employees.
– It preserves the tipped wage under FLSA provisions ensuring that tipped employees receive at least minimum wage through employer-paid cash wages combined with tips.
– It retains states’ ability under FLSA to set wages higher than federal statutory minimums.
