The Tipped Worker Protection Act repeals the separate minimum wage for tipped employees and mandates that all tips be distributed to employees.
The Tipped Worker Protection Act amends the Fair Labor Standards Act of 1938 to eliminate the separate minimum wage for tipped employees. It mandates that employers must distribute all tips to employees, prohibiting them from retaining or using tips for any other purpose. The bill also establishes rules for tip pooling systems, ensuring they are voluntary, transparent, and non-discriminatory. Additionally, it requires employers to disclose mandatory charges added to customer bills and treat these charges as tips for tax purposes.
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- Core Provisions
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- Critical Issues
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