Bill > H5507

This bill gradually increases the minimum wage for tipped employees (workers who receive gratuities, such as restaurant servers) over a five-year period. Currently, these employees can be paid a lower "cash wage" of $3.89 per hour, with the expectation that tips will make up the difference to reach the standard minimum wage. The bill mandates annual increases to this cash wage, starting with a $3.06 increase to $6.95 per hour on January 1, 2026, followed by $2 increases each subsequent year until reaching $14.95 per hour on January 1, 2030. Importantly, beginning January 1, 2031, tipped employees must be paid the full standard minimum wage, without any reduction for gratuities. The term "gratuities" is defined in the bill as voluntary monetary compensation received directly or indirectly by an employee for services rendered. This change aims to provide more stable and predictable income for workers in industries where tips have traditionally been a significant part of their compensation, such as restaurants and hotels.

Labor and Employment

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