Tipped Employee Protection Act

H.R. 1612, the Tipped Employee Protection Act, would change how employers calculate wages for staff who receive tips, such as servers and bartenders. Under current federal regulations, employers can only pay the lower "tipped minimum wage" for time spent on tasks directly related to serving customers; however, this bill would allow employers to pay that lower rate for any task—including non-tipped work like cleaning or prep work—provided the employee’s total income from tips and base pay still equals at least the federal minimum wage of $7.25 per hour. For workers, this means their hourly base pay would remain consistent regardless of the specific duties they perform during their shift, as long as their combined earnings meet the legal minimum.