Chapter 228 |
2015 -- H 5364 SUBSTITUTE A Enacted 07/10/2015 |
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 |
It is enacted by the General Assembly as follows: |
SECTION 1. Section 28-12-5 of the General Laws in Chapter 28-12 entitled "Minimum |
Wages" is hereby amended to read as follows: |
28-12-5. Employees receiving gratuities -- Incentive-based wages -- Certain |
employees of nonprofit entities. -- Employees receiving gratuities. -- (a) Every employer shall |
pay to each of his or her employees who, who are engaged in any work or employment in which |
gratuities have customarily and usually constituted a part of his or her weekly income, the rate as |
provided by §§ 28-12-3 and 28-12-3.1. |
(b) Allowance for gratuities as part of the hourly wage rate for restaurants, hotels, and |
other industries industries, except taxicabs and limited public motor vehicles vehicles, shall be |
an amount equal to the applicable minimum rates as provided by §§ 28-12-3 and 28-12-3.1 less |
two dollars and eighty-nine cents ($2.89) per hour. "Gratuities" means voluntary monetary |
compensation received directly or indirectly by the employee for services rendered. |
(c) Each employer desiring to deduct for gratuities as part of the minimum rates as |
provided in §§ 28-12-3 and 28-12-3.1 wages paid to an employee shall provide substantial |
evidence that the amount shall be set out in the formula in subsection (b) of this section; however, |
the cash wage shall not be less than two dollars and eighty-nine cents ($2.89) per hour.; provided, |
however, that commencing January 1, 2016, the cash wage shall increase by fifty cents ($.50) to |
an amount not less than three dollars and thirty-nine cents ($3.39) per hour; provided further, that |
commencing January 1, 2017, the cash wage shall increase by fifty cents ($.50) to an amount not |
less than three dollars and eighty-nine cents ($3.89) per hour. |
(d) The director of labor and training shall notify employers concerning what type of |
proof shall be accepted as substantial evidence for the purpose of this subsection. Employees |
involved shall be entitled to a hearing on the question of the amount of deduction if they so |
desire. |
(d)(e) In cases where wages are figured by the employer on an incentive basis in such a |
manner that an employee of reasonable average ability earns at least the minimum wage |
established by §§ 28-12-3 and 28-12-3.1, it shall be taken that the employer has complied with |
this statute. It shall be of no concern to the director of labor and training how the employer arrives |
at its wage scale so long as it is not unreasonable in its demands on the employee. |
(e)(f) Where, in the case of the employment of a full-time student who has not attained |
his or her nineteenth (19th) birthday engaged in the activities of a nonprofit association or |
corporation, whose aims and objectives are religious, educational, librarial, or community service |
in nature, the employer-employee relationship does exist, the employer shall pay to each such |
employee wages at a rate of not less than ninety percent (90%) of the minimum wage as specified |
in § 28-12-3. In case of any conflict between provisions of this section and those of § 28-12-3.1, |
the provisions of § 28-12-3.1 shall govern. |
SECTION 2. This act shall take effect upon passage. |
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LC000752/SUB A/2 |
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