BGOV Bill Analysis: H.R. 2312, Tipped Employee Definition

The definition of a tipped employee, who can be paid a reduced hourly minimum wage, would be expanded under H.R. 2312.

The federal minimum wage for tipped employees, defined as those in occupations where they “customarily and regularly” earn more than $30 a month in tips, is $2.13 per hour. If their total income including tips doesn’t add up to the $7.25 federal minimum wage for other employees, employers must make up the difference. States can set higher minimum wages, including for tipped workers.

The revised definition would include any tipped employee, regardless of their duties or the amount ...