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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of gratuities to tipped employees; |
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authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 61, Labor Code, is amended |
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by adding Section 61.021 to read as follows: |
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Sec. 61.021. GRATUITIES PAID TO TIPPED EMPLOYEE; PRIVATE |
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CAUSE OF ACTION; CIVIL PENALTY. (a) In this section, "tipped |
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employee" has the meaning assigned by Section 62.052. |
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(b) An employer may not retain any portion of gratuity paid |
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to or left for a tipped employee for any purpose, regardless of |
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whether the employer takes a tip credit against the payment of the |
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minimum wage to the employee. |
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(c) In addition to any other remedy provided by this |
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chapter, an employee aggrieved by an employer's violation of this |
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section may bring a cause of action against the employer. An |
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employee who prevails in an action brought under this subsection is |
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entitled to recover: |
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(1) the amount of any tip credit taken by the employer |
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on the employee; |
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(2) the amount of the gratuity retained by the |
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employer; |
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(3) an additional amount equal to the amount described |
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by Subdivision (2) as liquidated damages; |
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(4) court costs; and |
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(5) reasonable attorney's fees. |
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(d) An employer who violates this section is liable for a |
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civil penalty in the amount of $1,100 for each violation. |
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(e) An action to recover damages or a civil penalty under |
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this section must be brought not later than the second anniversary |
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of the date on which the gratuity was paid to or left for the |
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employee. |
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SECTION 2. Section 61.021, Labor Code, as added by this Act, |
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applies only to a gratuity paid to or left for an employee on or |
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after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |