Report Title:

Wage and Tips; Tip Credit

 

Description:

Protects employees who receive or may receive tips or gratuities during the course of employment from having this amount withheld or credited to their employers.

 

THE SENATE

S.B. NO.

1391

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to wages and tips of employees.

 

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

SECTION 1. The legislature finds that Hawaii's wage and hour laws do not protect employees who receive or may receive tips or gratuities during the course of their employment from having these amounts withheld or credited to their employers.

SECTION 2. Section 387-1, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Tips" means gratuities in the form of money paid by a customer, added to a customer's charge voluntarily, or added by the employer as a service charge."

2. By amending the definition of "wage" to read:

""Wage" means (except as the department may provide under section 387-11) legal tender of the United States or checks on banks convertible into cash on demand at full face value thereof and in addition thereto the reasonable cost as determined by the department, to the employer of furnishing an employee with board, lodging, or other facilities if such board, lodging, or other facilities are customarily furnished by such employer to the employer's employees. Except [for the purposes of the last sentence of section 387-2,] that "wage" shall not include tips or gratuities of any kind."

SECTION 3. Section 387-2, Hawaii Revised Statutes, is amended to read as follows:

"§387-2 Minimum wages. Except as provided in section 387-9 and this section, every employer shall pay to each employee employed by the employer wages at the rate of not less than [$3.85 per hour beginning January 1, 1988, $4.75 per hour beginning April 1, 1992, and] $5.25 per hour beginning January 1, 1993. [The hourly wage of a tipped employee may be deemed to be increased on account of tips if the employee is paid not less than twenty cents below the applicable minimum wage by the employee's employer and the combined amount the employee receives from the employee's employer and in tips is at least fifty cents more than the applicable minimum wage.]"

SECTION 4. Section 388-1, Hawaii Revised Statutes, is amended by amending the definition of "wages" to read as follows:

""Wages" means compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission, or other basis of calculation. It shall include the reasonable cost, as determined by the director under chapter 387, to the employer of furnishing an employee with board, lodging, or other facilities if such board, lodging, or other facilities are customarily furnished by the employer to the employer's employees but shall not include tips or gratuities of any kind[, provided that for the purposes of section 388-6, "wages" shall include tips or gratuities of any kind]."

SECTION 5. Section 388-6, Hawaii Revised Statutes, is amended to read as follows:

"§388-6 Withholding of wages[.]; tips. No employer may deduct, retain, or otherwise require to be paid, any part or portion of any compensation or tip earned by, or ascribed on a customer's bill or charge as a tip or gratuity to, any employee except where required by federal or state statute or by court process or when such deductions or retentions are authorized in writing by the employee, provided that the following may not be so authorized, or required to be borne by the employee:

(1) Fines;

(2) Cash shortage in a common money till, cash box, or register used by two or more persons; or cash shortage in a money till, cash box, or register under sole control if the employee is not given an opportunity to account for all moneys received at the start of a shift and all moneys turned in at the end of a shift;

(3) Fines, penalties, or replacement costs for breakage;

(4) Losses due to acceptance by an employee of checks which are subsequently dishonored if employee is given discretion to accept or reject any check;

(5) Losses due to defective or faulty workmanship, lost or stolen property, damage to property, default of customer credit, or nonpayment for goods or services received by customer if such losses are not attributable to employee's wilful or intentional disregard of employer's interest; or

(6) Medical or physical examination or medical report expenses which accrue due to services rendered to an employee or prospective employee, where such examination or report is requested or required by the employer or prospective employer or required by any law or regulation of federal, state or local governments or agencies thereof."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:

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