Core Provisions: The bill would amend Section 3(m)(1) of the Fair Labor Standards Act to increase the base minimum wage for tipped employees. “Tipped employees” are employees that customarily and regularly receive more than $30 a month in tips. Employers are currently required to pay tipped employees at least $2.13 per hour.

Under the bill, the base minimum pay for tipped employees would increase in a three-step process. Within 90 days of the bill becoming law, employers would be required to pay tipped employees at least $3.75 per hour. As of July 1, 2011, employers must pay tipped employees at least $5.00 per hour. Finally, as of July 1, 2012, employers must pay tipped employees at least 70% of the minimum wage for non-tipped employees, and no less than $5.50 per hour. The bill also requires the Secretary of Labor to provide notice of each wage increase in the Federal Register and on the Department of Labor website. 

Status:  Rep. Donna Edwards (D-MD) introduced the bill on May 21, 2009, and it was referred to the House Committee on Education and Labor that same day.