AB 669, as amended, Daly. Minimum wage: begin insertqualifying end inserttipped 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, atbegin delete $9end deletebegin insert $10end insert 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 leastbegin delete $15 per hour,end deletebegin insert
150% of the minimum wage,end insert 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 thanbegin delete $15 per hour,end deletebegin insert 150% of the minimum wage, as described,end insert to pay thebegin insert qualifying tippedend insert employee an amount equal to the difference, if any, between the minimum wage per hour for qualifying tipped employeesbegin insert
andend insert thebegin delete stateend delete minimum wage per hour for all other employees, multiplied by the total number of hours worked by thebegin insert qualifying tippedend insert employee during that month.begin delete This bill would supersede local minimum wage laws unless the local law contains specified provisions.end deletebegin insert The bill would require an employer, if it elects to pay its qualifying tipped employees the minimum wage for qualifying tipped employees rather than the minimum wage for all other employees, to pay all other employees a minimum wage equal to 110% of the minimum wage for all other employees or 110% of the applicable local minimum wage, whichever is greater. The
bill would also exempt an employer from paying a qualifying tipped employee a minimum wage established by a local ordinance that is greater then the minimum wage required for all other employees if the qualifying tipped employee is guaranteed an hourly rate of compensation by his or her employer, in each pay period, from wages that equal or exceed 150% of the minimum wage established by that local ordinance.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1182.12 of the Labor Code is amended
2to read:
(a) Notwithstanding 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.
8(b) Notwithstanding subdivision (a), on and after January 1,
92016, the minimum wage for a qualifying tipped employee shall
10bebegin delete nineend deletebegin insert tenend insert dollarsbegin delete ($9)end deletebegin insert
($10)end insert per hour.
11(c) “Qualifying tipped employee” means an employee who
12regularly receives income from wages at a rate equal to at least
13begin delete fifteen dollars ($15) per hour.end deletebegin insert 150 percent of the minimum wage
14required by subdivision (a).end insert
15(d) A qualifying tipped employee regularly receives income at
16an hourly rate equal to at least 150 percent of the minimum wage
17required by subdivision (a) if the qualifying tipped employee’s
18total wages divided by total hours worked equals or exceeds 150
19percent of the minimum wage required by subdivision (a) in
each
20of the two pay periods preceding the current pay period.
21(d)
end delete
P3 1begin insert(e)end insert If, in any month, a qualifying tipped employee receives
2income at a rate of less thanbegin delete fifteen dollars ($15) per hour,end deletebegin insert 150
3percent of the minimum wage required by subdivision (a),end insert the
4employer shall pay thebegin insert
qualifying tippedend insert employee an amount
5equal to the difference, if any, between the minimum wage required
6by subdivision (b) and thebegin delete stateend delete minimum wage for all other
7employees, as required by subdivision (a), multiplied by the total
8number of hours worked by thebegin insert qualifying tippedend insert employee during
9that month.
10(f) If an employer elects to pay its qualifying tipped employees
11the minimum wage in subdivision (b) rather than the minimum
12wage in subdivision (a), the employer shall pay all other employees
13a minimum wage equal to 110 percent of the minimum wage in
14subdivision (a) or 110 percent of the applicable
local minimum
15wage, whichever is greater.
16(g) A local ordinance establishing a minimum wage in excess
17of the amount required by subdivision (a) shall not apply to a
18qualifying tipped employee guaranteed an hourly rate of
19compensation by his or her employer, in each pay period, from
20wages that equal or exceed 150 percent of the amount required
21by that local ordinance.
22(e)
end delete
23begin insert(h)end insert For purposes of this section, the term “wages” shall have
24the meaning set forth in
Section 13009 of the Unemployment
25Insurance Code.
26(f) This section shall preempt local ordinances setting forth a
27minimum wage in excess of the minimum wage established by
28this subdivision, to the extent the ordinance is applicable to
29qualifying tipped employees, unless the ordinance specifically
30references this section and states the local jurisdiction’s intent to
31establish a higher minimum wage for qualifying tipped employees.
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