2015 -- H 5364 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGE - GRATUITIES

     

     Introduced By: Representatives Regunberg, Bennett, O'Brien, McNamara, and Diaz

     Date Introduced: February 11, 2015

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum

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Wages" is hereby amended to read as follows:

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     28-12-5. Employees receiving gratuities -- Incentive-based wages -- Certain

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employees of nonprofit entities. -- Employees receiving gratuities. -- (a) Every employer shall

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pay to each of his or her employees who, are engaged in any work or employment in which

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gratuities have customarily and usually constituted a part of his or her weekly income, the rate as

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provided by §§ 28-12-3 and 28-12-3.1.

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      (b) Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and

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other industries except taxicabs and limited public motor vehicles shall be an amount equal to the

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applicable minimum rates as provided by §§ 28-12-3 and 28-12-3.1 less two dollars and eighty-

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nine cents ($2.89) per hour. "Gratuities" means voluntary monetary compensation received

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directly or indirectly by the employee for services rendered.

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      (c) Each employer desiring to deduct for gratuities as part of the minimum rates as

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provided in §§ 28-12-3 and 28-12-3.1 wages paid to an employee shall provide substantial

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evidence that the amount shall be set out in the formula in subsection (b) of this section; however,

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the cash wage shall not be less than two dollars and eighty-nine cents ($2.89) per hour.; provided,

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however, that commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to

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an amount not less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that

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commencing January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not

 

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less than three dollars and eighty-nine cents ($3.89) per hour.

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     (d) The director of labor and training shall notify employers concerning what type of

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proof shall be accepted as substantial evidence for the purpose of this subsection. Employees

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involved shall be entitled to a hearing on the question of the amount of deduction if they so

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desire.

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      (d)(e) In cases where wages are figured by the employer on an incentive basis in such a

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manner that an employee of reasonable average ability earns at least the minimum wage

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established by §§ 28-12-3 and 28-12-3.1, it shall be taken that the employer has complied with

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this statute. It shall be of no concern to the director of labor and training how the employer arrives

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at its wage scale so long as it is not unreasonable in its demands on the employee.

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      (e)(f) Where, in the case of the employment of a full-time student who has not attained

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his or her nineteenth (19th) birthday engaged in the activities of a nonprofit association or

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corporation, whose aims and objectives are religious, educational, librarial, or community service

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in nature, the employer-employee relationship does exist, the employer shall pay to each such

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employee wages at a rate of not less than ninety percent (90%) of the minimum wage as specified

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in § 28-12-3. In case of any conflict between provisions of this section and those of § 28-12-3.1,

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the provisions of § 28-12-3.1 shall govern.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - MINIMUM WAGE - GRATUITIES

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     This act would raise the minimum wage for tipped workers to three dollars and thirty-

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nine cents ($3.39) per hour beginning January 1, 2016, and to three dollars and eighty-nine cents

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($3.89) per hour, beginning January 1, 2017.

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     This act would take effect upon passage.

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