California Legislature—2015–16 Regular Session

Assembly BillNo. 669


Introduced by Assembly Member Daly

February 25, 2015


An act to amend Section 1182.12 of the Labor Code, relating to minimum wage.

LEGISLATIVE COUNSEL’S DIGEST

AB 669, as introduced, Daly. Minimum wage: tipped employees.

Existing law requires that, on and after July 1, 2014, the minimum wage for all industries be not less than $9 per hour. Existing law further requires that on and after January 1, 2016, the minimum wage for all industries be not less than $10 per hour.

This bill would establish the minimum wage for a qualifying tipped employee, on and after January 1, 2016, at $9 per hour. The bill would define “qualifying tipped employee” to mean an employee who regularly receives income from wages at a rate equal to at least $15 per hour, as described. The bill would define “wages” for these purposes to mean all remuneration for services performed by an employee for his or her employer, including tips received by an employee in the course of his or her employment.

The bill would require an employer, if in any month a qualifying tipped employee receives income from wages at a rate of less than $15 per hour, to pay the employee an amount equal to the difference, if any, between the minimum wage per hour for qualifying tipped employees the state minimum wage per hour for all other employees, multiplied by the total number of hours worked by the employee during that month. This bill would supersede local minimum wage laws unless the local law contains specified provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 1182.12 of the Labor Code is amended
2to read:

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1182.12.  

begin insert(a)end insertbegin insertend insertNotwithstanding any other provision of this part,
4on and after July 1, 2014, the minimum wage for all industries
5shall be not less than nine dollars ($9) per hour, and on and after
6January 1, 2016, the minimum wage for all industries shall be not
7less than ten dollars ($10) per hour.

begin insert

8(b) Notwithstanding subdivision (a), on and after January 1,
92016, the minimum wage for a qualifying tipped employee shall
10be nine dollars ($9) per hour.

end insert
begin insert

11(c) “Qualifying tipped employee” means an employee who
12regularly receives income from wages at a rate equal to at least
13fifteen dollars ($15) per hour.

end insert
begin insert

14(d) If, in any month, a qualifying tipped employee receives
15income at a rate of less than fifteen dollars ($15) per hour, the
16employer shall pay the employee an amount equal to the difference,
17if any, between the minimum wage required by subdivision (b) and
18the state minimum wage for all other employees, as required by
19subdivision (a), multiplied by the total number of hours worked
20by the employee during that month.

end insert
begin insert

21(e) For purposes of this section, the term “wages” shall have
22the meaning set forth in Section 13009 of the Unemployment
23Insurance Code.

end insert
begin insert

24(f) This section shall preempt local ordinances setting forth a
25minimum wage in excess of the minimum wage established by this
26subdivision, to the extent the ordinance is applicable to qualifying
27tipped employees, unless the ordinance specifically references this
28section and states the local jurisdiction’s intent to establish a
29higher minimum wage for qualifying tipped employees.

end insert


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