Tipped Worker Protection Act

The Tipped Worker Protection Act eliminates the sub-minimum wage for tipped workers, requiring employers to pay the full minimum wage instead of the current $2.13/hour rate that relies on tips to make up the difference. During a transition period, tipped workers would receive a minimum cash wage of $3.60/hour in the first year, increasing by $1.50 annually until reaching the full minimum wage. The bill also prohibits employers from keeping tips or using them for anything other than distributing to employees, requires transparency about service charges, and establishes rules for voluntary tip pooling. This bill directly affects workers in restaurants, bars, and other service industries who traditionally receive tips as part of their compensation.