Employment: gratuities: enforcement.
If enacted, SB 648 would strengthen protections for employees regarding gratuities, which are classified as their sole property. The bill delineates that any gratuities given should not be subject to deductions for processes such as credit card fees. Employers who allow patrons to pay gratuities via credit card are required to pass the full gratuity amount to the employee, ensuring that they receive the intended compensation without loss due to processing costs. By requiring payment of gratuities by the next regular payday, the bill aims to improve the financial security of workers in the service industry.
Senate Bill No. 648, introduced by Senator Smallwood-Cuevas, aims to amend Section 351 of the Labor Code in California, focusing on the enforcement of gratuities owed to employees. Currently, existing law, which is enforced by the Department of Industrial Relations and the Division of Labor Standards Enforcement (DLSE), prevents employers from collecting or deducting gratuities meant for employees. SB 648 seeks to bolster these provisions by granting the Labor Commissioner the authority to investigate violations and issue citations or civil actions against employers who unlawfully withhold gratuities.
The main points of contention surrounding SB 648 revolve around how strictly laws should govern gratuity handling and whether existing laws are adequate. Supporters argue that enforcing stricter regulations is essential for protecting employees from exploitative practices. They see this bill as an important step toward improving labor standards and ensuring fair treatment of service workers. Conversely, critics may contend that additional regulations on businesses could create further complications in compliance and operational costs, potentially driving some small businesses to financial strain.