HB 1665
AN ACT relating to the payment of gratuities to certain employees.
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Prevents employers from taking any portion of tips earned by tipped employees, ensuring that gratuities paid directly to workers (such as servers, bartenders, and other service industry staff) belong entirely to those employees. The legislation prohibits employers from collecting tips for any reason, including to cover credit card processing fees, and applies to tips received on or after September 1, 2025. The bill protects workers' right to keep the full amount of tips they earn, providing additional financial security for tipped employees across Texas.
Subject Areas
Bill Text
relating to the payment of gratuities to certain employees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 61, Labor Code, is amended by adding Section 61.021 to read as follows: Sec. 61.021. GRATUITIES PAID TO TIPPED EMPLOYEES. (a) In this section, "tipped employee" has the meaning assigned by Section (b) An employer may not collect or receive any portion of a gratuity paid to or left for a tipped employee, including for the purpose of compensating a credit or debit card issuer for any financial services rendered on account of the gratuity. The gratuity is the property of the tipped employee. SECTION 2. Section 61.021, Labor Code, as added by this Act, applies only to a gratuity paid to or left for an employee on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to the payment of gratuities to certain employees.
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