Employment: gratuities: enforcement.
- Authorizes the Labor Commissioner to investigate and penalize employers who illegally withhold employee tips.
- Requires employers to pay credit card tips in full without deducting processing fees.
- Mandates payment of credit card tips by the next regular payday after customer authorization.
State Senator Smallwood-Cuevas's gratuity protection legislation expands the Labor Commissioner's authority to investigate and penalize employers who improperly withhold or deduct from employee tips. The measure adds explicit enforcement provisions to existing California law that establishes tips as the sole property of workers.
Under the new provisions, the Labor Commissioner gains the power to investigate potential violations, issue citations, and pursue civil actions against employers who collect or deduct from employee gratuities. The enforcement procedures will mirror those currently used for wage violation cases under Labor Code Section 1197.1. The bill maintains current requirements that employers must transfer credit card tips to workers without deducting processing fees and must pay such gratuities by the next regular payday.
The legislation builds upon California's existing framework prohibiting employers from taking any portion of tips given to employees or requiring tips be credited against wages. While the Department of Industrial Relations previously had general authority over gratuity regulations, this measure creates a specific enforcement mechanism through the Labor Commissioner's office without requiring additional state appropriations.
 Lola Smallwood-CuevasD Senator | Bill Author |  Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 75 | 0 | 4 | 79 | PASS |
- Authorizes the Labor Commissioner to investigate and penalize employers who illegally withhold employee tips.
- Requires employers to pay credit card tips in full without deducting processing fees.
- Mandates payment of credit card tips by the next regular payday after customer authorization.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
State Senator Smallwood-Cuevas's gratuity protection legislation expands the Labor Commissioner's authority to investigate and penalize employers who improperly withhold or deduct from employee tips. The measure adds explicit enforcement provisions to existing California law that establishes tips as the sole property of workers.
Under the new provisions, the Labor Commissioner gains the power to investigate potential violations, issue citations, and pursue civil actions against employers who collect or deduct from employee gratuities. The enforcement procedures will mirror those currently used for wage violation cases under Labor Code Section 1197.1. The bill maintains current requirements that employers must transfer credit card tips to workers without deducting processing fees and must pay such gratuities by the next regular payday.
The legislation builds upon California's existing framework prohibiting employers from taking any portion of tips given to employees or requiring tips be credited against wages. While the Department of Industrial Relations previously had general authority over gratuity regulations, this measure creates a specific enforcement mechanism through the Labor Commissioner's office without requiring additional state appropriations.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 75 | 0 | 4 | 79 | PASS |
Lola Smallwood-CuevasD Senator | Bill Author | Not Contacted |