Modeling the energy dissipation capacity of shear-yielding members is important in the evaluation of the seismic response of earthquake resistant structural systems. This paper presents the model of a frame element for the hysteretic behavior of these members. The model is based on a three-field variational formulation with independent displacement, stress, and strain fields. The displacement field is based on the Timoshenko beam theory. The nonlinear response of the element is derived from the section integration of the multiaxial material stress-strain relation at several control points along the element, thus accounting for the interaction between normal and shear stress and the spread of inelastic deformations in the member. With the derivation of the axial force-shear-flexure interaction of short members from the material response the proposed model is general, in contrast to existing concentrated plasticity models that require parameter calibration for different loading and support conditions. Furthermore, the model does not suffer from shear locking and does not require mesh refinement for the accurate representation of inelastic member deformations. Correlation studies of analytical results with available experimental data of the hysteretic behavior of shear-yielding members confirm the capabilities of the proposed model. Its computational efficiency makes it suitable for large scale simulations of the earthquake response of structures with shear-yielding members.