Bill > SB1287

This bill requires food, beverage, and service establishments that accept tips to post two specific signs explaining their tip allocation practices and providing contact information for labor authorities. The first sign must be placed at points of customer transaction and clearly explain how tips are distributed, using one of three prescribed statements such as "Tips are kept entirely by each employee to whom they are left" or detailing the exact percentage split among different employee groups. The second sign, which must be posted where other employee notices are displayed, must include the same tip allocation information along with contact details for both the Hawaii Department of Labor and Industrial Relations and the U.S. Department of Labor's Wage and Hour Division, providing phone numbers for each county. The bill also establishes legal remedies for employees, allowing them to recover back wages and penalties if an employer fails to post the required signs or improperly handles tip allocation. This legislation stems from documented instances of tip theft in Hawaii, where employers have been found to illegally retain tips, with the goal of increasing transparency and protecting workers' earnings. The bill is set to take effect on July 1, 2050, and does not impact any rights, penalties, or proceedings that existed before its implementation.

Business and Industry, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1287&year=2026