Arkansas Congressman Fights to Change Tipped Wage Laws Amid Business Concerns

Arkansas Congressman Fights to Change Tipped Wage Laws Amid Business Concerns

Miami Standard (ARKANSAS) – Arkansas servers continue to work under a minimum tip credit rate of $2.63 per hour, while the state’s minimum wage stands at $11.00.

Employers are required to make up the difference if tipped employees do not earn at least the minimum wage through tips. However, ongoing federal regulations have complicated wage calculations, prompting renewed efforts for reform.

The dual job rule, introduced by the U.S. Department of Labor in 2021, differentiates between non-tipping tasks, such as folding silverware, and tipping tasks, like serving and bussing tables. Under this rule, non-tipping duties must be compensated at the full $11.00 minimum wage, while tipping tasks remain at the lower $2.63 rate.

Congressman Steve Womack argues that these regulations place an unnecessary burden on small-business owners, making it difficult for restaurants to track employee tasks and wages effectively.

“These restaurant owners have to keep track of the time their employees are doing menial tasks versus work that earns tips. I think anybody with half a brain can see that this creates a regulatory burden, additional paperwork, and management issues that are out of reach for many small-business operators,” Womack stated.

In response, Womack reintroduced the Tipped Employee Protection Act on March 24, 2025. The bill seeks to simplify the classification of tipped workers, protect small businesses from added federal oversight, and streamline the tipped wage system.

According to a statement from Womack’s office, the legislation “restricts the ability of judges or bureaucrats to set arbitrary limits or requirements in classifying the hours or duties that a tipped employee performs.”

The bill’s reintroduction has sparked debate, with supporters arguing that it reduces red tape for businesses, while critics warn it may lead to lower wages for workers. As discussions continue, Arkansas servers and restaurant owners await the potential impact of the proposed changes.

Jean Lopez

Jean Lopez

Jean Lopez is a dedicated journalist at Miami Standard News, specializing in local and crime reporting. She has a passion for sharing information which helps the community in any way possible.

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