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Proponents contend the current regulations create confusion for employers and workers in the service industry.
Opponents raise concerns about the bill's potential impact on worker protections.
The bill has passed the House and now heads to the Senate for consideration. If enacted, it would change how employers determine which workers qualify for the tipped minimum wage, potentially affecting millions of service industry employees nationwide.
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Committee Consideration and Mark-up Session Held
Nov 20, 2025
Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15.
Nov 20, 2025
Nov 20, 2025 · 15:15
On November 20, 2025, the House Committee on Education and Workforce held a markup session to consider three bills affecting worker compensation and wage protections. H.R. 2870, the Working Families Flexibility Act, would allow private-sector employees to receive compensatory time off instead of overtime pay, accruing 1.5 hours of comp time for each hour of overtime worked, up to 160 hours per year. H.R. 2312, the Tipped Employee Protection Act, would simplify the definition of tipped employees by removing consideration of specific job duties and instead defining tipped workers as those whose tips and cash wages together meet the federal minimum wage. H.R. 2299, the Ensuring Workers Get PAID Act, would establish a permanent Payroll Audit Independent Determination program allowing employers to self-report wage and overtime violations and resolve them without penalties if workers accept back-wage settlements. The bills generated significant debate. Business groups and committee Republicans supported the measures as modernizing outdated labor rules and providing flexibility. Labor unions and worker advocates opposed all three bills, arguing they would weaken worker protections. The AFL-CIO contended that H.R. 2870 risks lower pay and wage theft, H.R. 2312 would increase wage unpredictability for tipped workers, and H.R. 2299 would shift enforcement power away from workers by allowing employers to avoid penalties and limiting Department of Labor investigations. The committee voted to advance all three bills. H.R. 2870 and H.R. 2299 were ordered reported by votes of 19-15 and 20-15 respectively, while H.R. 2312 was ordered reported 19-15 after a technical amendment. The bills now move to the full House for consideration, though passage is not guaranteed.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
Dec 30, 2025
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
Dec 30, 2025
Jan 12, 2026 · 21:00
On January 13, 2026, the House Rules Committee considered five bills aimed at modernizing workplace policies. The bills examined were H.R. 2262 (Flexibility for Workers Education Act), H.R. 2270 (Empowering Employer Child and Elder Care Solutions Act), H.R. 2312 (Tipped Employee Protection Act), H.R. 2988 (Protecting Prudent Investment of Retirement Savings Act), and H.R. 4366 (Save Local Business Act). H.R. 2262 would exclude time spent on voluntary professional development activities outside regular work hours from counting as compensable work time under the Fair Labor Standards Act, allowing employers to offer skills training without triggering overtime pay obligations. H.R. 2312 would simplify the definition of tipped employees by allowing employers to classify workers as tipped if their combined tips and wages meet the federal minimum wage, regardless of job duties. H.R. 2270 would encourage employers to offer childcare as an employee benefit, while H.R. 2988 would require retirement plan fiduciaries to prioritize financial returns in investment decisions. H.R. 4366 would clarify joint employer standards for small businesses. The Rules Committee reported the resolution governing floor consideration of these bills by an 8-3 vote on January 12, 2026. The House subsequently passed the rule on January 13 by a vote of 214-207. The rule provided for one hour of general debate and one motion to recommit on each bill. Passage of the rule allows the bills to proceed to floor consideration but does not guarantee they will advance further.
Committee Consideration and Mark-up Session Held
Nov 20, 2025
Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 15.
Nov 20, 2025
Nov 20, 2025 · 15:15
On November 20, 2025, the House Committee on Education and Workforce held a markup session to consider three bills affecting worker compensation and wage protections. H.R. 2870, the Working Families Flexibility Act, would allow private-sector employees to receive compensatory time off instead of overtime pay, accruing 1.5 hours of comp time for each hour of overtime worked, up to 160 hours per year. H.R. 2312, the Tipped Employee Protection Act, would simplify the definition of tipped employees by removing consideration of specific job duties and instead defining tipped workers as those whose tips and cash wages together meet the federal minimum wage. H.R. 2299, the Ensuring Workers Get PAID Act, would establish a permanent Payroll Audit Independent Determination program allowing employers to self-report wage and overtime violations and resolve them without penalties if workers accept back-wage settlements. The bills generated significant debate. Business groups and committee Republicans supported the measures as modernizing outdated labor rules and providing flexibility. Labor unions and worker advocates opposed all three bills, arguing they would weaken worker protections. The AFL-CIO contended that H.R. 2870 risks lower pay and wage theft, H.R. 2312 would increase wage unpredictability for tipped workers, and H.R. 2299 would shift enforcement power away from workers by allowing employers to avoid penalties and limiting Department of Labor investigations. The committee voted to advance all three bills. H.R. 2870 and H.R. 2299 were ordered reported by votes of 19-15 and 20-15 respectively, while H.R. 2312 was ordered reported 19-15 after a technical amendment. The bills now move to the full House for consideration, though passage is not guaranteed.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
Dec 30, 2025
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-420.
Dec 30, 2025
Jan 12, 2026 · 21:00
On January 13, 2026, the House Rules Committee considered five bills aimed at modernizing workplace policies. The bills examined were H.R. 2262 (Flexibility for Workers Education Act), H.R. 2270 (Empowering Employer Child and Elder Care Solutions Act), H.R. 2312 (Tipped Employee Protection Act), H.R. 2988 (Protecting Prudent Investment of Retirement Savings Act), and H.R. 4366 (Save Local Business Act). H.R. 2262 would exclude time spent on voluntary professional development activities outside regular work hours from counting as compensable work time under the Fair Labor Standards Act, allowing employers to offer skills training without triggering overtime pay obligations. H.R. 2312 would simplify the definition of tipped employees by allowing employers to classify workers as tipped if their combined tips and wages meet the federal minimum wage, regardless of job duties. H.R. 2270 would encourage employers to offer childcare as an employee benefit, while H.R. 2988 would require retirement plan fiduciaries to prioritize financial returns in investment decisions. H.R. 4366 would clarify joint employer standards for small businesses. The Rules Committee reported the resolution governing floor consideration of these bills by an 8-3 vote on January 12, 2026. The House subsequently passed the rule on January 13 by a vote of 214-207. The rule provided for one hour of general debate and one motion to recommit on each bill. Passage of the rule allows the bills to proceed to floor consideration but does not guarantee they will advance further.