The bill amends the "Improved Workforce Opportunity Wage Act" to establish specific conditions under which the minimum hourly wage for employees who receive gratuities is determined. It introduces a new requirement that employers must assess gratuities after each shift to ensure they meet or exceed the difference between the minimum wage rates specified in the act. Additionally, the bill clarifies that gratuities are the property of the employee and outlines the percentage of the minimum wage that employees receiving gratuities will earn over the next several years, starting at 38% in 2025 and increasing to 50% by 2031.

Furthermore, the bill mandates that employers provide written notice to employees regarding the distribution of service charges and maintain records of compliance for at least three years. A new provision is included that prohibits employers from using gratuities exceeding the wage difference to offset wages owed to employees for shifts where gratuities do not meet the minimum wage requirements. This aims to protect employees' rights to their gratuities while ensuring fair compensation practices.

Statutes affected:
House Introduced Bill: 408.934