General Assembly Raised Bill No. 7085 January Session, 2017 LCO No. 3900 *03900_______LAB* Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: (LAB) General Assembly Raised Bill No. 7085 January Session, 2017 LCO No. 3900 *03900_______LAB* Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: (LAB) AN ACT CONCERNING CREDIT CARD TRANSACTIONS AND GRATUITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 31-60 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2017): (a) Any employer who pays or agrees to pay to an employee less than the minimum fair wage or overtime wage shall be deemed in violation of the provisions of this part. (b) The Labor Commissioner shall adopt such regulations, in accordance with the provisions of chapter 54, as may be appropriate to carry out the purposes of this part. Such regulations may include, but are not limited to, regulations defining and governing an executive, administrative or professional employee and outside salesperson; learners and apprentices, their number, proportion and length of service; and piece rates in relation to time rates; and shall recognize, as part of the minimum fair wage, gratuities in an amount (1) equal to twenty-nine and three-tenths per cent, and effective January 1, 2009, equal to thirty-one per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to thirty-four and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, equal to thirty-six and eight-tenths per cent of the minimum fair wage per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel restaurant, who customarily and regularly receive gratuities, (2) equal to eight and two-tenths per cent, and effective January 1, 2009, equal to eleven per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to fifteen and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, equal to eighteen and one-half per cent of the minimum fair wage per hour for persons employed as bartenders who customarily and regularly receive gratuities, and (3) not to exceed thirty-five cents per hour in any other industry, [and] except, if an employer imposes a surcharge on or reduces the gratuity paid to any employee through a credit card transaction, such gratuity shall not be recognized as part of the minimum fair wage. The commissioner shall also recognize deductions and allowances for the value of board, in the amount of eighty-five cents for a full meal and forty-five cents for a light meal, lodging, apparel or other items or services supplied by the employer; and other special conditions or circumstances which may be usual in a particular employer-employee relationship. The commissioner may provide, in such regulations, modifications of the minimum fair wage herein established for learners and apprentices; persons under the age of eighteen years; and for such special cases or classes of cases as the commissioner finds appropriate to prevent curtailment of employment opportunities, avoid undue hardship and safeguard the minimum fair wage herein established. Regulations in effect on July 1, 1973, providing for a board deduction and allowance in an amount differing from that provided in this section shall be construed to be amended consistent with this section. (c) Regulations adopted by the commissioner pursuant to subsection (b) of this section which define executive, administrative and professional employees shall be updated not later than October 1, 2000, and every four years thereafter, to specify that such persons shall be compensated on a salary basis at a rate determined by the Labor Commissioner. Sec. 2. (NEW) (Effective from passage) Any employer, who imposes a surcharge on or reduces the gratuity paid to any employee through a credit card transaction, shall post notice of such surcharge or reduction in a prominent place on the premises of such employer notifying the patrons of such employer of such surcharge or reduction. This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2017 31-60 Sec. 2 from passage New section This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2017 31-60 Sec. 2 from passage New section Statement of Purpose: To discourage employers from imposing a surcharge on or reducing the gratuity paid to any employee through a credit card transaction. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]