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.