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 that gratuities must be proven and reported for tax purposes, and it removes previous language that restricted the sharing of gratuities among employees, allowing for such sharing under certain conditions.

Additionally, the bill introduces new provisions requiring employers to inform employees about gratuity-related policies and allows for the possibility of employers requiring employees to share gratuities if they meet specific criteria. It maintains that gratuities remain the property of the employee who receives them, regardless of the employer's wage payments. Employers are also mandated to keep records of compliance with these regulations for a minimum of three years.

Statutes affected:
House Introduced Bill: 408.934