Relating to the payment of gratuities to certain employees.

HB 1665 prohibits employers in Texas from collecting or receiving any portion of tips left for tipped employees, including fees charged by credit card processors for handling gratuities. It directly affects workers in service industries (like restaurants) who receive tips, ensuring those tips belong solely to the employee. The law, effective September 1, 2025, makes it illegal for employers to use tips to cover card processing costs or otherwise claim them. This clarifies that gratuities are the property of the tipped employee under Texas Labor Code.