House Bill 251

150th General Assembly (2019 - 2020)

Bill Progress

Lieu/Substituted 3/12/20
The General Assembly has ended, the current status is the final status.

Bill Details

6/27/19
Sen. Walsh
AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO THE DELAWARE MINIMUM WAGE FOR EMPLOYEES THAT RECEIVE TIPS OR GRATUITIES.
This bill clarifies that the definition of employees who receive gratuities also includes employees that receive tips, that these employees must earn at least 50% of their income from tips or gratuities, and that the tips must come directly from customers not from tip pools or other similar intervening mechanism. It also clarifies that tips automatically added to a bill or added to credit card charges are to be treated like tips or gratuity and must be paid by the employer directly to the employee at the next pay period as opposed to being held by the employer waiting to receive payment from the credit card company and that the employer may not deduct service fees from the employees tips or gratuities. Lastly, this bill requires employers to give advance notice to its employees that receive tips or gratuities of: (1) the amount of the direct wage being paid to the employee; (2) the amount of tips or gratuities to be credited toward the minimum wage; (3) that all tips or gratuities must be retained by the employee, except for tip pools; (4) the tip or gratuity credit may not apply to any employee that did not receive the notice; (5) that the tip pool contribution will not be used to offset the employer’s statutory obligations to pay the minimum wage to other employees; and (6) that the employer must keep accurate records of all tips or gratuities received. If an employer does not provide this notice, the employer will be liable for a civil fine.
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Takes effect upon being signed into law
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