California Assembly Bill AB669 Amended / Bill

 BILL NUMBER: AB 669AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 14, 2015 INTRODUCED BY Assembly Member Daly FEBRUARY 25, 2015 An act to amend Section 1182.12 of the Labor Code, relating to minimum wage. LEGISLATIVE COUNSEL'S DIGEST AB 669, as amended, Daly. Minimum wage:  qualifying  tipped employees. Existing law requires that, on and after July 1, 2014, the minimum wage for all industries be not less than $9 per hour. Existing law further requires that on and after January 1, 2016, the minimum wage for all industries be not less than $10 per hour. This bill would establish the minimum wage for a qualifying tipped employee, on and after January 1, 2016, at  $9   $10  per hour. The bill would define "qualifying tipped employee" to mean an employee who regularly receives income from wages at a rate equal to at least  $15 per hour,   150% of the minimum wage,  as described. The bill would define "wages" for these purposes to mean all remuneration for services performed by an employee for his or her employer, including tips received by an employee in the course of his or her employment. The bill would require an employer, if in any month a qualifying tipped employee receives income from wages at a rate of less than  $15 per hour,   150% of the minimum wage, as described,  to pay the  qualifying tipped  employee an amount equal to the difference, if any, between the minimum wage per hour for qualifying tipped employees  and  the  state  minimum wage per hour for all other employees, multiplied by the total number of hours worked by the  qualifying tipped  employee during that month.  This bill would supersede local minimum wage laws unless the local law contains specified provisions.   The bill would require an employer, if it elects to pay its qualifying tipped employees the minimum wage for qualifying tipped employees rather than the minimum wage for all other employees, to pay all other employees a minimum wage equal to 110% of the minimum wage for all other employees or 110% of the applicable local minimum wage, whichever is greater. The   bill would also exempt an employer from paying a qualifying tipped employee a minimum wage established by a local ordinance that is greater then the minimum wage required for all other employees if the qualifying tipped employee is guaranteed an hourly rate of compensation by his or her employer, in each pay period, from wages that equal or exceed 150% of the minimum wage established by that local ordinance.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1182.12 of the Labor Code is amended to read: 1182.12. (a) Notwithstanding any other provision of this part, on and after July 1, 2014, the minimum wage for all industries shall be not less than nine dollars ($9) per hour, and on and after January 1, 2016, the minimum wage for all industries shall be not less than ten dollars ($10) per hour. (b) Notwithstanding subdivision (a), on and after January 1, 2016, the minimum wage for a qualifying tipped employee shall be  nine   ten  dollars  ($9)   ($10)  per hour. (c) "Qualifying tipped employee" means an employee who regularly receives income from wages at a rate equal to at least  fifteen dollars ($15) per hour.   150 percent of the minimum wage required by subdivision (a).   (d) A qualifying tipped employee regularly receives income at an hourly rate equal to at least 150 percent of the minimum wage required by subdivision (a) if the qualifying tipped employee's total wages divided by total hours worked equals or exceeds 150 percent of the minimum wage required by subdivision (a) in each of the two pay periods preceding the current pay period.   (d)   (e)  If, in any month, a qualifying tipped employee receives income at a rate of less than  fifteen dollars ($15) per hour,   150 percent of the minimum wage required by subdivision (a),  the employer shall pay the  qualifying tipped  employee an amount equal to the difference, if any, between the minimum wage required by subdivision (b) and the  state  minimum wage for all other employees, as required by subdivision (a), multiplied by the total number of hours worked by the  qualifying tipped  employee during that month.  (f) If an employer elects to pay its qualifying tipped employees the minimum wage in subdivision (b) rather than the minimum wage in subdivision (a), the employer shall pay all other employees a minimum wage equal to 110 percent of the minimum wage in subdivision (a) or 110 percent of the applicable local minimum wage, whichever is greater.   (g) A local ordinance establishing a minimum wage in excess of the amount required by subdivision (a) shall not apply to a qualifying tipped employee guaranteed an hourly rate of compensation by his or her employer, in each pay period, from wages that equal or exceed 150 percent of the amount required by that local ordinance.   (e)   (h)  For purposes of this section, the term "wages" shall have the meaning set forth in Section 13009 of the Unemployment Insurance Code.  (f) This section shall preempt local ordinances setting forth a minimum wage in excess of the minimum wage established by this subdivision, to the extent the ordinance is applicable to qualifying tipped employees, unless the ordinance specifically references this section and states the local jurisdiction's intent to establish a higher minimum wage for qualifying tipped employees.