This bill amends the Improved Workforce Opportunity Wage Act by modifying the conditions under which the minimum hourly wage rate for employees who receive gratuities is established. It specifies that the minimum wage for such employees will be a percentage of the minimum wage established under section 4, starting at 38% in 2025 and increasing to 50% by 2031. The bill also clarifies the definition of "gratuities" and emphasizes that these gratuities remain the property of the employee who receives them, while also allowing for the possibility of sharing gratuities with other employees under certain conditions.

Additionally, the bill removes previous language that required employers to inform employees of the provisions in writing at the time of hire and obtain written consent. It introduces new provisions that allow employers to require employees who receive gratuities to share them with other employees if certain conditions are met. The bill also mandates that employers provide written notice to employees and consumers regarding the distribution of service charges and requires employers to maintain compliance records for at least three years.

Statutes affected:
House Introduced Bill: 408.934