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CA SB648

CA SB648
Employment: gratuities: enforcement.


summary

Introduced
02/20/2025
In Committee
07/09/2025
Crossed Over
05/29/2025
Passed
07/30/2025
Dead
Signed/Enacted/Adopted
07/30/2025

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Section 351 of the Labor Code, relating to employment.

AI Summary

This bill amends California Labor Code Section 351 to clarify and strengthen protections for employee gratuities, explicitly stating that tips are the sole property of the employees who receive them. The bill specifically prohibits employers or their agents from collecting, taking, or receiving any portion of a gratuity paid by a patron, and prevents employers from deducting gratuity amounts from an employee's wages or requiring employees to credit gratuities against their wages. Additionally, the bill requires that when patrons pay gratuities via credit card, employers must pay employees the full amount indicated on the credit card slip, without deducting any credit card processing fees. The legislation authorizes the Labor Commissioner (the head of the Division of Labor Standards Enforcement within the Department of Industrial Relations) to investigate potential violations and take enforcement actions, including issuing citations or filing civil lawsuits against employers who improperly handle employee tips. This empowers the state to more effectively protect workers' rights to retain the full amount of gratuities given to them by customers.

Committee Categories

Budget and Finance, Justice, Labor and Employment

Sponsors (1)

Last Action

Chaptered by Secretary of State. Chapter 93, Statutes of 2025. (on 07/30/2025)

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