REPORT TITLE:
Tip Credit


DESCRIPTION:
Requires hotels and restaurants that apply a service charge for
food or beverage services, not distributed to employees as tip
income, to advise customers that a service charge is being used
to pay for costs or expenses other than wages and tips of
employees.   (HB2123 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2123
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
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 require hotels and restaurants
 
 7 that apply a service charge for food or beverage services, not
 
 8 distributed to employees as tip income, to advise customers that
 
 9 the service charge is being used to pay for costs or expenses
 
10 other than wages and tips of employees.
 
11      SECTION 2.  Section 481B, Hawaii Revised Statutes, is
 
12 amended by adding a new section to be appropriately designated
 
13 and to read as follows:
 
14      "481B-      Service charge.  Any hotel or restaurant that
 
15 applies a service charge for the sale of food or beverage
 
16 services shall distribute the service charge directly to its
 
17 employees as tip income or clearly disclose to the purchaser of
 
18 the services that the service charge is being used to pay for
 
19 costs or expenses other than wages and tips of employees."
 
20      SECTION 3.  New statutory material is underscored.
 
21      SECTION 4.  This Act shall take effect upon its approval.