Tipped Worker Protection: Ending Subminimum Wage, New Tip Rules.
This act aims to gradually eliminate the subminimum wage for tipped employees, ensuring their base pay increases until it matches the standard minimum wage. It also establishes clear rules for tip collection and distribution, preventing employers from retaining or using tips for their own purposes, and regulates service charges, which must be transparently communicated to customers and employees.
Key points
Gradual increase of the minimum wage for tipped employees until it reaches the standard minimum wage.
Employers are prohibited from keeping or using employee tips; all tips must go to employees.
Introduction of rules for establishing and managing voluntary and transparent tip pooling systems.
Mandatory disclosure to customers and employees about the purpose of service charges and prompt payment of employees' share.
Status:
Expired
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