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H.R. 5112119th CongressIn committeeLatest action Sep 3, 2025Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
HR 5112 would end the $2.13 tipped minimum wage, raising it by $1.50/year until it matches the regular federal minimum wage.
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HR 5112 eliminates the federal tipped minimum wage, which currently allows employers to pay tipped workers as little as $2.13 per hour. The transition would begin at $3.60 per hour and increase by $1.50 each year until the tipped wage reaches the regular federal minimum wage, at which point the separate category would be eliminated. The bill also bans employers and managers from keeping any portion of tips, requires voluntary tip-pooling arrangements, and mandates disclosure of what mandatory service charges are and whether workers receive them.
Tipped workers such as restaurant servers, bartenders, hotel staff, and delivery workers are most directly affected, along with their employers. The change would have the greatest impact in the roughly 20 states that still rely on the lower federal tipped wage, as about 30 states already require employers to pay tipped workers the full state minimum wage.
Businesses that currently rely on the federal tip credit, particularly restaurants, would need to restructure their pay practices over the transition period. The elimination of the two-tier wage system would shift the base labor cost obligation fully to employers rather than relying on customer tips to close the gap.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.