Bill > H1702

This bill amends existing law to gradually increase the minimum cash wage employers must pay tipped employees, with the goal of eventually aligning it with the general minimum wage. Specifically, it defines a "bona fide collective bargaining agreement" as one made with a union certified by the National Labor Relations Board (NLRB) or the Railway Labor Act. The bill then outlines a phased approach to increasing the tipped minimum wage, starting with a cash wage of $4.50 in 2018, then $6.00 in 2019, $8.75 in 2020, and $10.50 in 2021. From January 1, 2022, onwards, the cash wage for tipped employees will be set at the general minimum wage established by the act. In all cases, the employer is responsible for making up the difference between the cash wage paid and the general minimum wage, using tips received by the employee, provided the employee is informed of these rules and keeps their tips (though tip pooling among employees is allowed). Importantly, these provisions do not apply to tipped employees in the hotel and restaurant industry who are covered by a bona fide collective bargaining agreement.