Press Releases

WASHINGTON, D.C.—November 20, 2025… Today, the House Committee on Education and Workforce considered Congressman Steve Womack’s (AR-3) bill, H.R. 2312, the Tipped Employee Protection Act.

Congressman Womack said, “Tipped employees are the foundation on which the service industry is built. Unfortunately, inconsistent regulations create unclear and uncertain operating environments for businesses that employ these workers. My bill seeks to alleviate burdensome requirements on small businesses, end regulatory confusion, and ultimately, protect tipped employees’ right to earn a living. I thank Education and Workforce Committee Chairman Tim Walberg (R-MI) for his leadership and the entire Committee for considering this important legislation.”

Education and Workforce Committee Chairman Tim Walberg (MI-4) delivered the following remarks during the markup, “Next, we will review H.R. 2312, the Tipped Employee Protection Act. The FLSA, written in 1938, has not kept up with the modern workplace. Tipped workers are not clearly defined in the law, and we have seen several administrations and courts interpret their rights inconsistently. The Biden-Harris administration even attempted to impose overly complex timekeeping requirements that were nearly impossible to enforce. H.R. 2312, introduced by Representative Womack, gives businesses clarity and prevents them from being hampered by confusing regulations—all while protecting the rights of tipped workers.”

Rep. Micheal Baumgartner (WA-05), a cosponsor of the bill who spoke at today’s markup, said, “This is a win for tipped workers and the Main Street businesses that employ them, because it moves us away from an unworkable 80/20 rule and toward a standard the federal government can actually enforce. By advancing the Tipped Employee Protection Act, we’re giving restaurants and businesses the flexibility they need to serve customers, protecting them from crippling penalties for minor recordkeeping errors, and allowing the Department of Labor to focus on real wage violations instead of technical paperwork traps. I am proud to work with Rep. Womack on this crucial piece of legislation because businesses don’t need federal bureaucrats micromanaging their timekeeping.”

Sean Kennedy, Executive Vice President of Public Affairs for the National Restaurant Association, said, “Tipped employees and bartenders deserve certainty that the rules governing their livelihoods won’t change with every shift in Washington. These are skilled professionals who choose restaurant careers for their earning potential and flexibility. The current tipping system works for them, and this legislation helps protect that choice. We appreciate Rep. Womack’s leadership in championing tipped income workers and his ongoing support of restaurant owners and operators nationwide. We urge the House to act quickly and pass the Tipped Employee Protection Act to ensure stability and protect the livelihoods of millions of tipped workers.”

The bill was reported favorably out of committee and is now eligible to be taken up for a vote in the House.

Bill highlights:

• 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.

Read the House Education and Workforce Committee’s press release HERE.

Watch the full hearing HERE.

The bill text is available HERE.

Congressman Steve Womack (AR-3) has represented Arkansas’s Third Congressional District since 2011. He is a member of the House Appropriations Committee.

womack.house.gov

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