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H.R. 2312: Tipped Employee Protection Act

This legislation, titled the Tipped Employee Protection Act, proposes amendments to the Fair Labor Standards Act of 1938 to change how "tipped employees" are defined. Here are the key aspects of the bill:

Definition of Tipped Employees

The amendment makes significant changes to the definition of "tipped employees." Specifically, it removes the current requirement that an employee must "customarily and regularly receive more than $30 a month in tips" to be considered a tipped employee. Instead, the bill would define a tipped employee as one who:

  • Receives tips and other cash wages that, when combined with the minimum cash wage required, equals or exceeds the specified federal minimum wage.

Wage Calculation Period

The bill also introduces flexibility regarding the period over which employers can calculate wages. Employers can now choose a time frame ('the period described in this paragraph') to determine if an employee qualifies as a tipped employee. This period can be:

  • 1 day
  • 1 week
  • Every other week
  • Every pay period
  • 1 month

Intent and Purpose

The primary aim of this bill appears to be to clarify the status of tipped employees, potentially allowing more workers to qualify for protections and wages that meet or exceed the federal minimum wage standards. By broadening the definition and allowing for different pay calculation periods, the legislation seeks to ensure better compensation outcomes for tipped employees.

Relevant Companies

  • DRI (Darden Restaurants, Inc.): This company operates several restaurant brands which likely have many employees classified as tipped workers, such as servers and bartenders.
  • ROMN (Romano's Macaroni Grill): As with other restaurant chains, changes in tipped employee definitions may affect their wage structures and payroll expenses.
  • CMG (Chipotle Mexican Grill, Inc.): Chipotle employs many workers who may receive tips, thus, redefining "tipped employee" could significantly impact their wage policies and operational costs.

This is an AI-generated summary of the bill text. There may be mistakes.

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Sponsors

2 bill sponsors

Actions

2 actions

Date Action
Mar. 24, 2025 Introduced in House
Mar. 24, 2025 Referred to the House Committee on Education and Workforce.

Corporate Lobbying

0 companies lobbying

None found.

* Note that there can be significant delays in lobbying disclosures, and our data may be incomplete.

Potentially Relevant Congressional Stock Trades

Estimated excess return of the underlying stock since the transaction
Politician Stock Transaction Filed Traded
Congress pfp
Byron Donalds R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC. COMMON STOCK
Purchase $1,001 - $15,000
Apr 14, 2025 Mar 20, 2025 +5.27%
Congress pfp
Jefferson Shreve R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC. COMMON STOCK
Sale $15,001 - $50,000
Apr 11, 2025 Mar 13, 2025 +3.42%
Congress pfp
Gilbert Ray Cisneros, Jr. D / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC. COMMON STOCK
Sale $1,001 - $15,000
Mar 06, 2025 Feb 26, 2025 +1.67%
Congress pfp
Robert Bresnahan R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC. COMMON STOCK
Sale $1,001 - $15,000
Feb 13, 2025 Jan 13, 2025 -4.90%
Congress pfp
Robert Bresnahan R / House
DRI logo
DRI DARDEN RESTAURANTS, INC. COMMON STOCK
Sale $1,001 - $15,000
Feb 13, 2025 Jan 13, 2025 +19.03%
Congress pfp
John W. Hickenlooper D / Senate
CMG logo
CMG Chipotle Mexican Grill
Sale (Partial) $100,001 - $250,000
Oct 15, 2024 Sep 12, 2024 -8.69%
Congress pfp
John W. Hickenlooper D / Senate
CMG logo
CMG Chipotle Mexican Grill
Sale (Partial) $100,001 - $250,000
Jan 11, 2024 Dec 13, 2023 -8.96%
Congress pfp
John R. Curtis R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC.
Sale $1,001 - $15,000
Dec 15, 2023 Dec 04, 2023 -6.76%
Congress pfp
Pete Sessions R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC.
Sale $15,001 - $50,000
Nov 07, 2023 Oct 31, 2023 -1.95%
Congress pfp
Pete Sessions R / House
CMG logo
CMG CHIPOTLE MEXICAN GRILL, INC.
Sale $1,001 - $15,000
Nov 07, 2023 Oct 31, 2023 -1.95%
Congress pfp
Markwayne Mullin R / Senate
CMG logo
CMG Chipotle Mexican Grill
Purchase $1,001 - $15,000
Nov 01, 2023 Oct 03, 2023 +6.18%
Congress pfp
Markwayne Mullin R / Senate
CMG logo
CMG Chipotle Mexican Grill
Purchase $15,001 - $50,000
Oct 12, 2023 Sep 13, 2023 +6.67%
Congress pfp
John W. Hickenlooper D / Senate
CMG logo
CMG Chipotle Mexican Grill, Inc. Common Stock
Sale (Partial) $100,001 - $250,000
Jun 15, 2023 May 26, 2023 -9.11%
Congress pfp
John W. Hickenlooper D / Senate
CMG logo
CMG Chipotle Mexican Grill, Inc. Common Stock
Sale (Partial) $100,001 - $250,000
May 15, 2023 May 01, 2023 -8.64%