Amended IN Assembly May 30, 2017 Amended IN Assembly April 05, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1099Introduced by Assembly Member Gonzalez FletcherFebruary 17, 2017 An act to add Section 352 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 1099, as amended, Gonzalez Fletcher. Compensation: gratuities.Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.This bill would also require employers in specific industries an entity, as defined, that permit permits a patron to pay for services performed by an employee a worker by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a debit or credit card to be made to the employee worker not later than the next regular payday following the date the patron authorized the debit or credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 352 is added to the Labor Code, to read:352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly May 30, 2017 Amended IN Assembly April 05, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1099Introduced by Assembly Member Gonzalez FletcherFebruary 17, 2017 An act to add Section 352 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 1099, as amended, Gonzalez Fletcher. Compensation: gratuities.Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.This bill would also require employers in specific industries an entity, as defined, that permit permits a patron to pay for services performed by an employee a worker by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a debit or credit card to be made to the employee worker not later than the next regular payday following the date the patron authorized the debit or credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly May 30, 2017 Amended IN Assembly April 05, 2017
Amended IN Assembly May 30, 2017
Amended IN Assembly April 05, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1099
Introduced by Assembly Member Gonzalez FletcherFebruary 17, 2017
Introduced by Assembly Member Gonzalez Fletcher
February 17, 2017
An act to add Section 352 to the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1099, as amended, Gonzalez Fletcher. Compensation: gratuities.
Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.This bill would also require employers in specific industries an entity, as defined, that permit permits a patron to pay for services performed by an employee a worker by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a debit or credit card to be made to the employee worker not later than the next regular payday following the date the patron authorized the debit or credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law prohibits an employer or agent, as defined, from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee, as defined, by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Existing law declares a gratuity the sole property of the employee or employees to whom it was paid, given, or left for. Existing law requires an employer that permits patrons to pay gratuities by credit card to pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Existing law requires an employer to keep accurate records of all gratuities received by the employer and requires that these records be open to inspection at all reasonable hours by the Department of Industrial Relations. Existing law requires the department to enforce these provisions, and an employer who violates these provisions is guilty of a misdemeanor.
This bill would also require employers in specific industries an entity, as defined, that permit permits a patron to pay for services performed by an employee a worker by debit or credit card to also accept a debit or credit card for payment of gratuity. The bill would require payment of a gratuity made by a patron using a debit or credit card to be made to the employee worker not later than the next regular payday following the date the patron authorized the debit or credit card payment. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 352 is added to the Labor Code, to read:352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 352 is added to the Labor Code, to read:352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.
SECTION 1. Section 352 is added to the Labor Code, to read:
### SECTION 1.
352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.
352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.
352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.
352. (a) As used in this section, employer shall include only the following employers: entity means an organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.
(1)A hotel. For purposes of this paragraph, hotel means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.
(2)An employer in the car washing and polishing industry registered pursuant to Part 8.5 (commencing with Section 2050).
(3)An establishment licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code).
(4)A massage establishment as defined in Section 4601 of the Business and Professions Code.
(5)A restaurant. For purposes of this paragraph, restaurant means any retail establishment serving food or beverages for onsite consumption.
(6)An organization that uses an online-enabled application or platform to connect workers with customers to engage the workers to provide labor services, including, but not limited to, a transportation network company as defined in Section 5431 of the Public Utilities Code.
(b) An employer entity that permits a patron to pay for services performed by an employee a worker by debit or credit card shall also accept a debit or credit card for payment of gratuity. Payment of a gratuity made by a patron using a debit or credit card shall be made to an employee a worker not later than the next regular payday following the date the patron authorized the debit or credit card payment.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 2.