HB 2472
AN ACT relating to the payment of gratuities to tipped employees; creating
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
Protects tipped employees by prohibiting employers from collecting or taking any portion of employee gratuities, whether received in cash or through credit/debit card payments. Employers must pay the full gratuity amount to the employee by their next paycheck, and violations are considered a felony offense, which aims to ensure workers receive 100% of tips left by customers. The law applies to all tipped employees across Texas and creates significant legal consequences for employers who attempt to withhold or redistribute tip income.
Subject Areas
Bill Text
relating to the payment of gratuities to tipped employees; creating 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 EMPLOYEE; CRIMINAL PENALTY. (a) In this section, "tipped employee" has the meaning (b) An employer may not collect or receive any portion of a gratuity paid to or left for a tipped employee for any purpose, including for the purpose of compensating a credit or debit card issuer for any financial services rendered on account of the gratuity, regardless of whether the employer takes a tip credit against the payment of the minimum wage to the employee. The gratuity is the sole property of the tipped employee. (c) An employer must pay to a tipped employee the amount of any gratuity left for the employee by a customer who pays with a credit or debit card not later than the employee's first payday after the date on which the gratuity was authorized. (d) An employer commits an offense if the employer violates this section. An offense under this subsection is a felony of the (e) Each violation of this section is a separate offense. SECTION 2. Section 61.021, Labor Code, as added by this Act, applies only to conduct that occurs on or after the effective date SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the payment of gratuities to tipped employees; creating
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