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,…
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. Speaker, I yield 3 minutes to the gentleman from California (Mr. Takano), a distinguished member of the Committee on Education and Workforce and the ranking member of the Committee on Veterans' Affairs.
Mr. Speaker, I yield 4 minutes to the gentlewoman from Nevada (Ms. Titus).
Mr. Speaker, I yield 2 minutes to the gentleman from Nevada (Mr. Horsford).
Mr. Speaker, I yield 3 minutes to the gentlewoman from Georgia (Mrs. McBath), a member of the Committee on Education and Workforce.
Mr. Speaker, I yield an additional 1 minute to the gentlewoman from Georgia.
Mr. Speaker, I yield 3 minutes to the gentlewoman from Illinois (Ms. Budzinski).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, we received a letter from the Union SEIU, which says in part that this bill, the so-called Tipped Employee Protection Act, would amend Federal minimum wage and overtime law by broadening the definition of tipped employee and increasing the employer's power to move workers in and out of tipped employee status, including allowing employers to decide on a daily or weekly basis whether a worker counts as a tipped worker.
This is a harmful and ill-conceived bill in every possible way. Most tipped workers already struggle to make ends meet. We should be doing away with the subminimum wage for tipped workers, not incentivizing and expanding tipped work.
Mr. Speaker, I include in the Record a January 13, 2026, letter from
Mr. Speaker, I also include in the Record a January 13, 2026, letter from the Economic Policy Institute to Speaker Johnson.
January 13, 2026.
Re Opposition to H.R. 2988, Protecting Prudent Investment of
Retirement Savings Act; H.R. 2270, Empowering Child and
Elder Care Solutions Act; H.R. 4366, Save Local Business
Act; H.R. 2312, Tipped Employee Protection Act; and H.R.
2262, Flexibility for Workers Education Act.
Hon. Mike Johnson,
Hon. Hakeem Jeffries,
House of Representatives, Washington, DC.
Dear Members of Congress: The undersigned organizations
dedicated to worker rights and building a just and inclusive
economy write in opposition to H.R. 2988, Protecting Prudent
Investment of Retirement Savings Act; H.R. 2270, Empowering
Child and Elder Care Solutions Act; H.R. 4366, Save Local
Business Act; H.R. 2312, Tipped Employee Protection Act; and
H.R. 2262, Flexibility for Workers Education Act. If enacted,
these bills would harm workers by weakening longstanding
labor and employment laws, leading to lower pay, reduced
employer accountability, and more precarity.
H.R. 2988, Protecting Prudent Investment of Retirement
Savings Act
The Protecting Prudent Investment of Retirement Savings Act
would amend the Employee Retirement Income Security Act
(ERISA) to block retirement plan fiduciaries from considering
climate change and other environmental, social, and
governance factors when they select retirement investments.
The bill would constrain plan fiduciaries' ability to account
long-term financial risks in their investment decisions,
which would undermine workers' retirement security.
H.R 2270, Empowering Employer Child and Elder Care Solutions
Act
The Empowering Employer Child and Elder Care Solutions Act
would exclude child, dependent, and elder care payments from
the rate used to compute overtime compensation for eligible
workers. This would result in workers receiving less overtime
than they are owed under current law, which would in turn
incentivize employers to impose longer workweeks on already
over-worked employees. Further, workers who face longer
workweeks as a consequence of H.R. 2270 would likely
experience higher childcare costs as childcare providers who
operate during nontraditional hours (including evenings and
weekends) tend to cost more. H.R. 2270 would contradict the
basic premise, going back to 1938. that employers should be
deterred from requiring employees to work excessive and
burdensome hours.
H.R. 2262, The Flexibility for Workers Education Act
The Flexibility for Workers Education Act would amend the
Fair Labor Standards Act to excuse employers of their
responsibility to pay workers for trainings or other
professional development opportunities that are outside of
regular work hours. Despite the bill's generous-sounding
title, this bill would not give workers any more flexibility.
Instead, it allows employers to hold trainings and
professional development opportunities after work hours and
not pay workers who attend--as long as the employer does not
say it's required. However, employers can still lead workers
to believe these trainings and professional development
opportunities are required, which would result in workers not
being paid for their time.
H.R 2312, Tipped Employee Protection Act
This bill amends the FLSA's definition of ``tipped
employee'', by allowing employers to classify workers as
tipped employees--and thus allow employers to take a tip
credit--if workers receive (1) any amount of tips (2) over a
period of time selected by the employer, (3) regardless of
the employees' duties. Eliminating the requirement that
workers must be ``engaged in an occupation in which he
customarily and regularly receives more than $30 a month in
tips.'' And allowing employers to choose any time period
would give employers nearly unfettered discretion to re-
classify almost any worker receiving any amount of tips for
any amount of time as tipped employees and pay them a
subminimum wage of $2.13 an hour, including for time spent
doing non-tipped duties. This goes well beyond reversing the
80/20 rule challenged by the restaurant industry and would
only further exacerbate the precarity of workers in an
industry that already includes many of the nation's lowest-
paid occupations and suffers from already high rates of wage
theft. If Congress truly wants to protect tipped workers, it
should pass the Raise the Wage Act, which would raise the
federal minimum wage floor and gradually phase out the
subminimum wage for tipped workers.
H.R. 4366, Save Local Business Act
The ``Save Local Business Act'' would ensure that trillion-
dollar corporations like Amazon can use subcontracting and
outsourcing arrangements to escape accountability to their
workers. Businesses have long relied on subcontracting
arrangements--such as hiring workers through temporary
staffing agencies--to avoid their responsibility to comply
with the FLSA and NLRA, even though they maintain power to
control working conditions and that the workers are integral
to their business. These contracting work-arounds were
present when the FLSA and NLRA were passed in the 1930's, and
versions of this outsourcing are used today by companies.
Indeed, businesses across the economy--including in labor-
intensive and low-paid sectors like construction, home and
health care, janitorial and
building services, hotels and hospitality, and warehousing
and logistics--use similar contracting arrangements to
insulate themselves from accountability. Limiting employer
accountability and enabling corporations to avoid
responsibility for violations of workers' rights under the
FLSA and the NLRA will hasten race-to-the-bottom on labor
standards, with businesses that treat their workers fairly
finding it harder to compete.
Should H.R. 2988, Protecting Prudent Investment of
Retirement Savings Act; H.R. 2270, Empowering Child and Elder
Care Solutions Act; H.R. 4366, Save Local Business Act; H.R.
2312, Tipped Employee Protection Act; and H.R. 2262,
Flexibility for Workers Education Act be brought to the
floor, we strongly urge all Members of Congress to vote No.
With any questions, please reach out to Charlotte Dodge,
National Employment Law Project; Sam Sanders, Economic Policy
Institute or Michelle Feit, National Partnership for Women &
Families.
Sincerely,
Economic Policy Institute.
National Employment Law Project.
National Partnership for Women & Families.
Mr. Speaker, this is an open invitation for employers, particularly those involving restaurants and hotels, to lower their employees' wages by combining traditionally tipped occupations with nontipped occupations. For example, they will be able to put a line cook on the floor for a few hours a day and then apply the tip credit to all of the hours that the employee works.
Tipped workers already are paid less per hour and have less access to benefits such as paid sick leave, healthcare, short-term disability and life insurance, and under this bill employers would be given a pass to not pay workers what they otherwise would have been owed.
Mr. Speaker, I ask my colleagues to reject the bill, and I yield back the balance of my time.