TIPPED EMPLOYEE PROTECTION ACT

On 2026-01-13, Representative Tim Walberg (R-MI-5) delivered a floor speech titled "TIPPED EMPLOYEE PROTECTION ACT" in the House. The speech addressed healthcare and also covered the economy, taxes. It referenced legislation including HR2312, HR2262, HR2270, among other bills.

TIPPED EMPLOYEE PROTECTION ACT

Congressional Record, Volume 172 Issue 9 (Tuesday, January 13, 2026) [Congressional Record Volume 172, Number 9 (Tuesday, January 13, 2026)] [House] [Pages H685-H691] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] TIPPED EMPLOYEE PROTECTION ACT Mr. WALBERG. Mr. Speaker, pursuant to House Resolution 988, I call up the bill (H.R. 2312) to amend the Fair Labor Standards Act of 1938 to revise the definition of the term ``tipped employee'', and for other purposes, and ask for its immediate consideration in the House. The Clerk read the title of the bill. The SPEAKER pro tempore. Pursuant to House Resolution 988, the amendment in the nature of a substitute recommended by the Committee on Education and Workforce, printed in the bill, is adopted, and the bill, as amended, is considered read. The text of the bill, as amended, is as follows: H.R. 2312 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tipped Employee Protection Act''. SEC. 2. TIPPED EMPLOYEES. Section 3(t) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(t)) is amended-- (1) by striking ``(t)'' and inserting ``(t)(1)''; (2) by striking ``engaged in an occupation in which he customarily and regularly receives more than $30 a month in tips.'' and inserting ``, without regard to the duties of the employee, who receives tips and other cash wages for a work period described in paragraph (2) at a rate that, when combined with the cash wage required under subsection (m)(2)(A)(i), is not less than the wage in effect under section 6(a)(1).''; and (3) by adding at the end the following: ``(2) A work period described in this paragraph is a work period that is determined by the employer of the employee, such as a work period of 1 day, 1 week, every 2 weeks, every 28 days, or every pay period.''. The SPEAKER pro tempore. The bill, as amended, shall be debatable for 1 hour, equally divided and controlled by the chair and ranking minority member of the Committee on Education and Workforce or their respective designees. The gentleman from Michigan (Mr. Walberg) and the gentleman from Virginia (Mr. Scott) each will control 30 minutes. The Chair recognizes the gentleman from Michigan (Mr. Walberg). General Leave Mr. WALBERG. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and insert extraneous material on H.R. 2312. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Michigan? There was no objection. Mr. WALBERG. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 2312, the Tipped Employee Protection Act. Mr. Speaker, America's labor law hasn't kept up with the times. The Fair Labor Standards Act, which governs much of our modern workforce policy and regulations, was written in 1938 and has never been updated to meaningfully protect tipped workers. As a result, tipped workers are not clearly defined or protected under the law. This leaves their jobs vulnerable to the whims of administrative regulations, court rulings, and too often unclear guidance written by unelected bureaucrats that inconsistently interpret the rights of tipped workers. That creates chaos for millions of workers. The Biden-Harris administration was perhaps the most striking example of government overreach and the harm it can do to working families' bottom lines. Its disastrous 80/20 rule required that no more than 20 percent of the work performed by tipped employees could be categorized as untipped work, and those untipped tasks could only be performed for 30 minutes at a time. Basically, this required minute-by-minute manager supervision to ensure workers were complying with the rule. Anyone in the service industry would tell you in a high-paced environment like a restaurant or bar that is next to impossible, but because tipped workers had no clear definition or proper protections under the FLSA, the Biden-Harris administration was free to try and impose overly complex timekeeping requirements that were impossible to enforce. For several years, this created an enormous headache for small businesses like restaurants that heavily relied on tipped workers. Even worse, such convoluted timekeeping requirements directly impact how much pay Americans take home. Like many of my colleagues, I want to see Americans rewarded for their hard work and ensure they are paid what they earn. That is why I am proud to rise in support of H.R. 2312, the Tipped Employee Protection Act, which creates stability for tipped workers and preserves opportunities for them to earn a good wage. The bill creates a clear, commonsense definition of a tipped worker and prevents future attempts by misguided activist judges and bureaucrats seeking to implement policies that hurt workers' bottom lines. {time} 1500 The Tipped Employee Protection Act also ensures workers earn at least the minimum wage, and the bill respects States' authority to set higher wage levels. This creates even more opportunities for tipped workers to earn more, often far above the minimum wage. As we have discussed at length in the Education and Workforce Committee, Federal policy far too often treats a State like California the same as Michigan or Arkansas. One-size-fits-all rarely works. The bill also preserves the current tip credit system, which workers across the country overwhelmingly support--90 percent. This is just one of the ways Republicans are helping tipped workers earn more. [[Page H686]] As part of the working families tax cuts, Republicans enacted landmark policies like no tax on tips and no tax on overtime, which put more money back into the working family's pockets. Republicans are working hard to deliver solutions that help Americans thrive. H.R. 2312 puts more money back in workers' pockets and eases the burden on employers by removing needless Federal regulations. I am proud to support the Tipped Employee Protection Act. Congress should make it clear that we are working to help put more money back in tipped workers' pockets. Mr. Speaker, I urge my colleagues to support this bill and the millions of workers who will benefit from it, and I reserve the balance of my time. Mr. SCOTT of Virginia. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in opposition to H.R. 2312, the Tipped Employee Protection Act. It is actually the tipped employer protection act. Today, we are discussing one of several bills that House Republicans claim will benefit workers but ultimately falls short of what workers need. H.R. 2312 would redefine the Fair Labor Standards Act, the FLSA, to make workers more vulnerable to wage theft and give employers an excuse not to pay workers what they are otherwise owed. Under present law, the FLSA allows employers to take a tip credit only if employees are in jobs where they regularly and customarily earn at least $30 a month in tips. If workers split their time between jobs that regularly earn tips and jobs that don't, such as one shift as a restaurant server and another as a restaurant line cook, the employer can apply the tip credit today only to the tip-earning shifts. This bill would tear down that distinction. Ultimately, the bill seeks to expand the pool of workers that employers can pay a subminimum wage rather than the full wage. This is problematic because tipped workers are paid less per hour and have less access to benefits such as sick leave, healthcare, short-term disability, and life insurance. In fact, the Federal tipped minimum wage is only $2.13 an hour. Instead of giving workers a leg up, this bill offers bad actors an opportunity to cut corners and shortchange their workers. Mr. Speaker, for that reason, I oppose the bill and urge my colleagues to do the same. Mr. Speaker, I reserve the balance of my time. Mr. WALBERG. Mr. Speaker, I yield 6 minutes to the gentleman from Arkansas (Mr. Womack), the sponsor of this good bill. Mr. WOMACK. Mr. Speaker, I thank Chairman Walberg for this opportunity. Mr. Speaker, I rise in support of my legislation, the Tipped Employee Protection Act, which clarifies the definition of a tipped employee, providing long-term certainty for the service industry and, ultimately, protecting tipped employees' right to earn a living, a good living. Mr. Speaker, our local service industry businesses, like the family- owned restaurant down the street, both reflect and shape the culture in each of our communities. These establishments aren't just places to enjoy a good meal. They are where we foster and grow relationships. From catching up with friends to shaking hands on new business to marking some of life's biggest accomplishments--birthdays, anniversaries, graduations, and promotions. Where do we do this? We do this down at the local restaurant. Many eateries like the ones I just described make their home in my own area of northwest Arkansas. Some of my favorites include Neal's Cafe in Springdale. By the way, I should give credit to its owner, Micah Neal, for helping provide the inspiration for the legislation that we are talking about here today. Another place is Herman's, an iconic rib house in Fayetteville. Mr. Speaker, I could go on and on, naming some of my area's most popular restaurants. What do they have in common? To begin with they have great food, but it is the hardworking people behind the counter or taking your table order who truly make these businesses landmarks in our communities. We all have them. The bill I stand here in support of today, Mr. Speaker, is about protecting these workers. Restaurants, most of which are small businesses, operate on very thin margins. The tip credit system is the foundation on which these small businesses operate. The tip credit, or the tipped wage, has been part of the Fair Labor Standards Act for decades. 

Referenced legislation: HRES988, HRES988, HR2262, HR2270, HR2312, HR2988, HR4366, HR5402