Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-1099 Compensation: gratuities.(2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 02/17/2017 02:00 PM
AB1099:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1099


Introduced by Assembly Member Gonzalez Fletcher

February 17, 2017


An act to add Section 352 to the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 1099, as introduced, Gonzalez Fletcher. Compensation: gratuities.
Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.
This bill would also require an employer that permits a patron to pay for services performed by an employee by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a credit card to be made to the employee not later than the next regular payday following the date the patron authorized the credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 352 is added to the Labor Code, to read:

352.
 An employer that permits a patron to pay for services performed by an employee by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a credit card shall be made to an employee not later than the next regular payday following the date the patron authorized the credit card payment.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.