Texas HB1665 prohibits employers from collecting gratuities intended for tipped employees.

Texas HB1665 amends the Labor Code to ensure that employers cannot collect or receive any portion of a gratuity paid to or left for a tipped employee. This includes gratuities intended to compensate credit or debit card issuers for financial services related to the gratuity. The gratuity is considered the property of the tipped employee. The provisions of this Act apply only to gratuities paid on or after its effective date, which is September 1, 2025.

Texas HB1665 prohibits employers from collecting gratuities intended for tipped employees.

Texas HB1665 amends the Labor Code to ensure that employers cannot collect or receive any portion of a gratuity paid to or left for a tipped employee. This includes gratuities intended to compensate credit or debit card issuers for financial services related to the gratuity. The gratuity is considered the property of the tipped employee. The provisions of this Act apply only to gratuities paid on or after its effective date, which is September 1, 2025.