H.R. 8555

Living Wage For All Act

Sponsor: Delia C. Ramirez

34 cosponsors
Follow this bill

Official summary

No official summary yet.

Text of the bill

Expand all
Sec. 6. Tipped employees

(a) Base minimum wage for tipped employees and tips retained by employees. Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows:

Text this section adds to the law

(i) the cash wage paid such employee, which for purposes of such determination shall be not less than—

(I) for tipped employees of large employers (as defined in section 3 of the Living Wage For All Act), not less than—

(aa) $6.00 an hour, for the 1-year period beginning on the effective date under section 11 of the Living Wage For All Act;

(bb) $9.00 an hour, beginning 1 year after such effective date;

(cc) $12.00 an hour, beginning 2 years after such effective date;

(dd) $15.00 an hour, beginning 3 years after such effective date;

(ee) $18.00 an hour, beginning 4 years after such effective date; and

(ff) beginning 5 years after such effective date, the minimum wage in effect under section 6(a)(1) for such employee; and

(II) for tipped employees of other employers (as defined in section 3 of the Living Wage For All Act), not less than—

(aa) $4.75 an hour, for the 1-year period beginning on the effective date under section 11 of the Living Wage For All Act;

(bb) for each succeeding 1-year period until the cash wage under this subclause equals the minimum wage in effect under section 6(a)(1) for such employee, an hourly wage equal to the amount determined under this subclause for the preceding year, increased by the lesser of—

(AA) $1.75; or

(BB) the amount necessary for the wage under this subclause to equal the minimum wage in effect under section 6(a)(1) for such employee; and

(cc) for each succeeding 1-year period after the increase made pursuant to subclause (II)(bb), the minimum wage in effect under section 6(a)(1) for such employee; and

(b) Tips retained by employees. Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended—

(1) in the second sentence of the matter following clause (ii), by striking of this subsection, and all tips received by such employee have been retained by the employee and inserting of this subsection. Any employee shall have the right to retain any tips received by such employee; and

(2) by adding at the end the following: An employer shall inform each employee of the right and exception provided under the preceding sentence..

(c) Scheduled repeal of separate minimum wage for tipped employees

(1) Tipped employees. Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by subsections (a) and (b), is further amended by striking the sentence beginning with In determining the wage an employer is required to pay a tipped employee, and all that follows through of this subsection. and inserting The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1)..

(2) Publication of notice. Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking or in accordance with subclause (II) or (III) of section 3(m)(2)(A)(i), and inserting or in accordance with section 3(m)(2)(A)(i),.

(3) Effective date. The amendments made by paragraphs (1) and (2) shall take effect, with respect to a tipped employee, on the date that is 1 day after the date on which the cash wage required under section 3(m)(2)(A)(i) equals the minimum wage in effect under section 6(a)(1) for such employee.

(d) Penalties. Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended—

(1) in the third sentence of subsection (b), by inserting or used after kept; and

(2) in the second sentence of subsection (e)(2), by inserting or used after kept.