By Maxey H.B. No. 94 77R99 JMM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain workplace posting requirements regarding the 1-3 payment of wages to tipped employees; providing an administrative 1-4 penalty. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 61, Labor Code, is amended 1-7 by adding Section 61.006 to read as follows: 1-8 Sec. 61.006. NOTICE REQUIREMENTS AFFECTING TIPPED EMPLOYEES; 1-9 ADMINISTRATIVE PENALTY. (a) In this section, "tipped employee" has 1-10 the meaning assigned by Section 62.052. 1-11 (b) The commission shall prescribe a notice containing the 1-12 information required by this section. An employer who employs 1-13 tipped employees shall post the notice in conspicuous places in the 1-14 workplace in addition to the notice required under Section 1-15 61.012(c). 1-16 (c) The notice must contain: 1-17 (1) information informing employees of the 1-18 requirements of Subsection (d) regarding the computation of 1-19 overtime wages; 1-20 (2) a statement that a tipped employee is not required 1-21 to share the employee's tips with other employees who have not 1-22 customarily and regularly participated in tip pooling arrangements, 1-23 including dishwashers, cooks, chefs, and janitors; 1-24 (3) a statement that a tipped employee is not required 2-1 to contribute more than 15 percent of the employee's tips to a tip 2-2 pool; 2-3 (4) a statement that an employee who is employed in a 2-4 dual job in which the employee performs unrelated duties is 2-5 considered to be a tipped employee only with respect to the duties 2-6 for which a tip is received and that no tip credit may be taken for 2-7 the hours in which the other duties are performed; 2-8 (5) a statement that a tipped employee employed at a 2-9 restaurant is not required to compensate the restaurant for any 2-10 unintentional breakage or loss, walkout without payment by a 2-11 patron, or complimentary meal given to a patron by the restaurant; 2-12 (6) the following statement: "If you believe that 2-13 your rights are being violated, you may contact the Texas Workforce 2-14 Commission for assistance."; 2-15 (7) the telephone number of the commission; and 2-16 (8) the Internet address for the labor law information 2-17 page of the Internet site. 2-18 (d) For purposes of Subsection (c)(1), the notice must 2-19 describe the computation of overtime wages as the dollar amount 2-20 resulting from subtracting the hourly tip credit from the product 2-21 of the federal minimum wage multiplied by one and one-half. 2-22 (e) An employer who employs tipped employees shall 2-23 disseminate to those employees a brochure prescribed by the 2-24 commission that includes the information required in the notice 2-25 adopted under this section. The brochure must contain a page that 2-26 may be detached, signed by the tipped employee as an acknowledgment 2-27 of receipt of the brochure, and placed in the employee's personnel 3-1 records. 3-2 (f) An employer who employs tipped employees and who fails 3-3 to comply with the requirements of this section is subject to an 3-4 administrative penalty in an amount not to exceed $10,000 for each 3-5 violation. The commission may assess an administrative penalty for 3-6 a violation under this subsection in the manner provided by Section 3-7 51.033. 3-8 SECTION 2. (a) Except as provided by Subsection (b) of 3-9 this section, this Act takes effect September 1, 2001. 3-10 (b) Section 61.006(f), Labor Code, as added by this Act, 3-11 takes effect September 1, 2002. 3-12 (c) The Texas Workforce Commission shall prescribe a notice 3-13 and brochure that comply with the requirements of this Act and make 3-14 that material available to affected employers not later than 3-15 January 1, 2002.