HB 5345, which would eliminate the tip credit, passed out of the House Labor & Commerce Committee on April 3 after the sponsor, Representative Elizabeth Hermandez, pledged to hold the bill on the floor for further negotiations.

It passed the committee 17-11 with one Democrat joining the Republican members to vote against the proposal.

Members from both sides of the aisle indicated concerns with the proposal and its impact on the hospitality industry, particularly independent restaurants.

NFIB submitted written testimony in opposition to HB 5345 and will continue its efforts to block the elimination of the tip credit.