TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO SERVICE CHARGES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that consumers should know whether, and to what extent, the money they pay hotels for porterage service charges is being paid to employees. When a hotel charges service charges to customers, customers may believe that those charges are being paid to employees as tip income; however, this is not necessarily the case. Despite the fact that many employees statewide rely on tips as a crucial supplement to their wages, hotels can retain all or part of those service charges for themselves. When hotels engage in this practice, it should be transparent to consumers because this information could influence whether a consumer chooses to use porterage services. The information may also be valuable to employees and potential employees of a hotel when making employment decisions.
The purpose of this Act is to ensure that hotels either distribute porterage service charges to employees in full or notify customers that service charges are being used for other purposes.
SECTION 2. Section 481B-14, Hawaii Revised Statutes, is amended to read as follows:
§481B-14 Hotel or
restaurant service charge; hotel porterage service charge; disposition.[ ]]
(a) Any [ hotel]:
(1) Hotel or restaurant that applies a service charge for the sale of food or beverage services; or
(2) Hotel that applies a service charge for porterage services;
shall distribute the service charge directly to its employees as tip income or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees.
(b) As used in this section, unless the
context requires otherwise, "porterage" means the act of moving
luggage, bags, or parcels between a guest room and a lobby, front desk, or any
area with vehicular access at a hotel, hotel-condominium, or condominium-hotel,
as defined in section 486K-1."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2030.
Service Charges; Porterage Services; Hotels
Requires hotels to distribute porterage service charges to employees in full or disclose to customers that the charges are being used for other purposes. (SB1009 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.