OLR Bill Analysis

HB 7085

AN ACT CONCERNING CREDIT CARD TRANSACTIONS AND GRATUITIES.

SUMMARY

This bill prohibits employers from applying the “tip credit” to a tip paid to an employee through a credit card if the employer reduces the tip or imposes a surcharge on it. It also requires employers who reduce or impose a surcharge on credit card tips to post a notice notifying patrons about the practice in a prominent place on their premises.

By law, the tip credit allows employers to count their employees' tips as a portion of their minimum wage requirement. This reduces the employer's share of the minimum wage, as long as the tips make up the difference between the hourly wage paid and minimum wage.

EFFECTIVE DATE: the notice requirement is effective upon passage and the credit card tip credit provision is effective October 1, 2017.

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable

Yea

8

Nay

5

(03/02/2017)