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 rate set under section 4, starting at 38% in 2025 and increasing annually to reach 50% by 2031. The bill also clarifies the definition of "gratuities" and stipulates that gratuities remain the property of the employee who receives them, regardless of the employer's payment of the minimum wage.

Additionally, the bill introduces new provisions regarding the sharing of gratuities among employees, allowing employers to require employees who receive gratuities to share them with others, provided that the receiving employee meets certain conditions. It also mandates that employers inform employees about the provisions of this section and maintain records of compliance for at least three years. The language regarding written consent from employees at the time of hire has been removed, and the requirement for employers to provide written notice of their service charge distribution plans has been retained.

Statutes affected:
House Introduced Bill: 408.934
As Passed by the House: 408.934