Referred to the House Committee on Education and Workforce.
The bill amends the Fair Labor Standards Act to expand permissible tip pools to include employees who do not customarily receive tips, provided that employees who do customarily receive tips are paid a cash wage at least equal to the federal minimum wage. In effect, employers could share tips broadly only if they do not take a federal tip credit and pay tipped employees the full minimum wage.
Liberal emphasizes worker equity and ending tip-credit reliance
Relative to its intended legislative type, this bill is a focused substantive amendment to the Fair Labor Standards Act that clearly and specifically modifies tip-pooling rules by permitting mixed pools when tipped employees are paid at least the federal minimum wage.
The bill amends the Fair Labor Standards Act to expand permissible tip pools to include employees who do not customarily receive tips, provided that employees who do customarily receive tips are paid a cash wage at least equal to the federal minimum wage.
In effect, employers could share tips broadly only if they do not take a federal tip credit and pay tipped employees the full minimum wage.
The change modifies the definition of allowable tip-pool participants in 29 U.S.C. 203(m)(2).
Narrow statutory tweak helps employers and contains a worker safeguard, but is politically salient to labor interests and may face opposition in the Senate.
Relative to its intended legislative type, this bill is a focused substantive amendment to the Fair Labor Standards Act that clearly and specifically modifies tip-pooling rules by permitting mixed pools when tipped employees are paid at least the federal minimum wage. It integrates cleanly with the existing statutory framework by amending a specific subsection and referencing section 6(a)(1).
Liberal emphasizes worker equity and ending tip-credit reliance
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberal emphasizes worker equity and ending tip-credit reliance
Likely supportive because it enables tip sharing with non-tipped workers and requires tipped employees receive full minimum wage.
They will still want stronger enforcement and anti-retaliation protections to prevent employer circumvention.
Mixed to somewhat supportive: sees fairness benefits for non-tip employees but worries about costs and administrative burdens for small employers.
Would favor compromises like phased implementation, exemptions, or funding assistance for small businesses.
Likely opposed because it removes federal flexibility to use the tipped-wage credit and imposes higher wage costs and regulatory requirements on employers.
Views it as federal intrusion into employer wage-setting and small-business operations.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow statutory tweak helps employers and contains a worker safeguard, but is politically salient to labor interests and may face opposition in the Senate.
The bill has not accumulated any surfaced votes yet.
Liberal emphasizes worker equity and ending tip-credit reliance
Narrow statutory tweak helps employers and contains a worker safeguard, but is politically salient to labor interests and may face oppositi…
Relative to its intended legislative type, this bill is a focused substantive amendment to the Fair Labor Standards Act that clearly and specifically modifies tip-pooling rules by permitting mixed pools when tipped empl…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.