BILL NUMBER: AB 669	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2015

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 amended, Daly. Minimum wage:  qualifying 
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 
 $10  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, 
 150% of the minimum wage,  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,   150% of the minimum wage, as
described,  to pay the  qualifying tipped  employee an
amount equal to the difference, if any, between the minimum wage per
hour for qualifying tipped employees  and  the 
state  minimum wage per hour for all other employees,
multiplied by the total number of hours worked by the  qualifying
tipped  employee during that month.  This bill would
supersede local minimum wage laws unless the local law contains
specified provisions.   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. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1182.12 of the Labor Code is amended to read:
   1182.12.  (a) Notwithstanding any other provision of this part, on
and after July 1, 2014, the minimum wage for all industries shall be
not less than nine dollars ($9) per hour, and on and after January
1, 2016, the minimum wage for all industries shall be not less than
ten dollars ($10) per hour.
   (b) Notwithstanding subdivision (a), on and after January 1, 2016,
the minimum wage for a qualifying tipped employee shall be 
nine   ten  dollars  ($9)  
($10)  per hour.
   (c) "Qualifying tipped employee" means an employee who regularly
receives income from wages at a rate equal to at least 
fifteen dollars ($15) per hour.   150 percent of the
minimum wage required by subdivision (a).  
   (d) A qualifying tipped employee regularly receives income at an
hourly rate equal to at least 150 percent of the minimum wage
required by subdivision (a) if the qualifying tipped employee's total
wages divided by total hours worked equals or exceeds 150 percent of
the minimum wage required by subdivision (a) in each of the two pay
periods preceding the current pay period.  
   (d) 
    (e)  If, in any month, a qualifying tipped employee
receives income at a rate of less than  fifteen dollars ($15)
per hour,   150 percent of the minimum wage required by
subdivision (a),  the employer shall pay the  qualifying
tipped  employee an amount equal to the difference, if any,
between the minimum wage required by subdivision (b) and the 
state  minimum wage for all other employees, as required by
subdivision (a), multiplied by the total number of hours worked by
the  qualifying tipped  employee during that month. 
   (f) If an employer elects to pay its qualifying tipped employees
the minimum wage in subdivision (b) rather than the minimum wage in
subdivision (a), the employer shall pay all other employees a minimum
wage equal to 110 percent of the minimum wage in subdivision (a) or
110 percent of the applicable local minimum wage, whichever is
greater.  
   (g) A local ordinance establishing a minimum wage in excess of the
amount required by subdivision (a) shall not apply to a qualifying
tipped employee guaranteed an hourly rate of compensation by his or
her employer, in each pay period, from wages that equal or exceed 150
percent of the amount required by that local ordinance. 

   (e) 
    (h)  For purposes of this section, the term "wages"
shall have the meaning set forth in Section 13009 of the Unemployment
Insurance Code. 
   (f) This section shall preempt local ordinances setting forth a
minimum wage in excess of the minimum wage established by this
subdivision, to the extent the ordinance is applicable to qualifying
tipped employees, unless the ordinance specifically references this
section and states the local jurisdiction's intent to establish a
higher minimum wage for qualifying tipped employees.