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 to 50% by 2031. The bill also clarifies the conditions under which an employee can be paid this reduced minimum wage, including the requirement that gratuities must equal or exceed the difference between the two wage rates and that the employer must inform the employee of these provisions.

Additionally, the bill introduces new language regarding the sharing of gratuities among employees, allowing employers to require gratuity sharing if certain conditions are met. It also removes previous language that mandated employees retain all gratuities, except for voluntary sharing. The bill emphasizes that gratuities remain the property of the employee and outlines the employer's responsibilities for record-keeping and notifying employees and consumers about service charge distribution plans.

Statutes affected:
House Introduced Bill: 408.934