REPORT TITLE:
Tip Credit


DESCRIPTION:
Protects employees who receive or may receive tips or gratuities
during the course of employment from having these amounts
withheld or credited to their employers.  (HB2123 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2123
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO WAGES AND TIPS OF EMPLOYEES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that Hawaii's hotel and
 
 2 restaurant employees may not be receiving tips or gratuities
 
 3 during the course of their employment from patrons because
 
 4 patrons believe their tips or gratuities are being included in
 
 5 the service charge and being passed on to the employees.
 
 6      The purpose of this Act is to advise customers that the
 
 7 service charge is being used to pay for costs or expenses other
 
 8 than wages and tips of employees.
 
 9      SECTION 2.  Section 481B, Hawaii Revised Statutes, is
 
10 amended by adding a new section to be appropriately designated
 
11 and to read as follows:
 
12      "481B-      Service charge.  Any hotel or restaurant
 
13 applying a service charge for the sale of food or beverage
 
14 services shall distribute the service charge to its employees or
 
15 else clearly disclose to the purchaser of such services that the
 
16 service charge is being used to pay for costs or expenses other
 
17 than wages and tips of employees."
 
18      SECTION 3.  New statutory material is underscored.
 
19      SECTION 4.  This Act shall take effect upon its approval.