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TX HB1665

TX HB1665
Relating to the payment of gratuities to certain employees.


summary

Introduced
12/18/2024
In Committee
03/12/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to the payment of gratuities to certain employees.

AI Summary

This bill adds a new section to the Texas Labor Code that protects the rights of tipped employees by explicitly stating that gratuities (tips) belong solely to the employee who received them. The bill defines a "tipped employee" by referencing an existing definition in Section 62.052 and clearly prohibits employers from collecting or receiving any portion of an employee's tips, including preventing employers from using tips to offset credit or debit card processing fees. The new law will apply only to gratuities paid to employees on or after its effective date, which is September 1, 2025. By introducing this legislation, the Texas Legislature aims to ensure that workers in service industries who rely on tips receive the full amount of gratuities left for them by customers, preventing employers from retaining any part of these earnings.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Referred to s/c on Workforce by Speaker (on 03/12/2025)

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