The bill amends the "Improved Workforce Opportunity Wage Act" by modifying Section 4d, which pertains to the minimum hourly wage rate for employees who receive gratuities. It establishes that the minimum wage for such employees will be a percentage of the minimum wage set under section 4, starting at 38% in 2025 and increasing incrementally to 50% by 2031. The bill also clarifies that gratuities must be retained by the employee, with provisions for voluntary sharing among employees in the service chain, and requires employers to inform employees of these provisions in writing at the time of hire.

Additionally, the bill introduces new requirements for employers regarding the use of gratuities. Specifically, it prohibits employers from using gratuities received by employees to offset wages owed for shifts where the gratuities do not meet the minimum wage difference. Employers are also mandated to keep compliance records for at least three years and provide written notice to employees and consumers about service charge distribution plans. Overall, the amendments aim to enhance the protection of gratuities for employees and ensure fair wage practices.

Statutes affected:
House Introduced Bill: 408.934