Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4254 Latest Draft

Bill / Introduced Version Filed 02/01/2024

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HOUSE . . . . . . . . . . . . . . . No. 4254
The Commonwealth of Massachusetts
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INITIATIVE PETITION OF IRENE S. LI AND OTHERS
OFFICE OF THE SECRETARY.
BOSTON, JANUARY 16, 2024.
Steven T. James
Clerk of the House of Representatives
State House
Boston, Massachusetts 02133
                    Sir: — I herewith transmit to you, in accordance with the 
requirements of Article XLVIII of the Amendments to the Constitution an 
initiative petition for “A Law Requiring the Full Minimum Wage for Tipped 
Workers with Tips on Top,” signed by ten qualified voters and filed with this 
department on or before December 6, 2023, together with additional signatures 
of qualified voters in the number of 84,804, being a sufficient number to comply 
with the Provisions of said Article.             
Sincerely,
WILLIAM FRANCIS GALVIN
Secretary of the Commonwealth.
AN INITIATIVE PETITION.
    Pursuant to Article XLVIII of the Amendments to the Constitution of the 
Commonwealth, 	as amended, the undersigned qualified voters of the 
Commonwealth, ten in number at least, hereby petition for the enactment into 
law of the following measure: 2 of 9
        FILED ON: 1/23/2024
HOUSE . . . . . . . . . . . . . . . No. 4254
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act to require the full minimum wage for tipped workers with tips on top.
Be it enacted by the People, and by their authority, as follows:
1 SECTION 1.
2 Section 7 of Chapter 151 of the General Laws is hereby amended by striking the third 
3paragraph, as amended by Chapter 121 of the Acts of 2018, and inserting in place thereof the 
4following paragraph:-
5 In determining the wage an employer is required to pay a tipped employee, the amount 
6paid to such employee by the employer shall be an amount equal to: (1) the cash wage paid such 
7employee, which for purposes of such determination shall be not less than sixty-four percent of 
8the wage in effect under section l ; and (2) an additional amount on account of the tips received 
9by such employee, which amount is at least the difference between the wage specified in clause 
10(l) and the wage in effect under section 1, with payments to the employee to be consistent with 
11section 148 of chapter 149. This paragraph shall not apply with respect to any tipped employee 
12unless such employee has been informed by the employer of the provisions of this paragraph, 
13and all tips received by such employee have been retained by the employee, except that this  3 of 9
14paragraph shall not be construed to prohibit the pooling of tips among employees who 
15customarily and regularly receive tips.
16 SECTION 2.
17 Said section 7 of said chapter 151 is hereby amended by striking the third paragraph and 
18inserting in place thereof the following paragraph:-
19 In determining the wage an employer is required to pay a tipped employee, the amount 
20paid to such employee by the employer shall be an amount equal to: (1) the cash wage paid such 
21employee, which for purposes of such determination shall be not less than seventy-three percent 
22of the wage in effect under section 1; and (2) an additional amount on account of the tips 
23received by such employee, which amount is at least the difference between the wage specified 
24in clause (1) and the wage in effect under section 1, with payments to the employee to be 
25consistent with section 148 of chapter 149. This paragraph shall not apply with respect to any 
26tipped employee unless such employee has been informed by the employer of the provisions of 
27this paragraph, and all tips received by such employee have been retained by the employee, 
28except that employer of the provisions of this paragraph, and all tips received by such employee 
29have been retained by the employee, except that this paragraph shall not be construed to prohibit 
30the pooling of tips among employees who customarily and regularly receive tips.
31 SECTION 3.
32 Said section 7 of said chapter 151 is hereby amended by striking the third paragraph and 
33inserting in place thereof the following paragraph:- 4 of 9
34 In determining the wage an employer is required to pay a tipped employee, the amount 
35paid to such employee by the employer shall be an amount equal to: (1) the cash wage paid such 
36employee, which for purposes of such determination shall be not less than eighty-two percent of 
37the wage in effect under section 1; and (2) an additional amount on account of the tips received 
38by such employee, which amount is at least the difference between the wage specified in clause 
39(l) and the wage in effect under section l, with payments to the employee to be consistent with 
40section 148 of chapter 149. This paragraph shall not apply with respect to any tipped employee 
41unless such employee has been informed by the employer of the provisions of this paragraph, 
42and all tips received by such employee have been retained by the employee, except that this 
43paragraph shall not be construed to prohibit the pooling of tips among employees who 
44customarily and regularly receive tips.
45 SECTION 4.
46 Said section 7 of said chapter 151 is hereby amended by striking the third paragraph and 
47inserting in place thereof the following paragraph:-
48 In determining the wage an employer is required to pay a tipped employee, the amount 
49paid to such employee by the employer shall be an amount equal to: (l) the cash wage paid such 
50employee, which for purposes of such determination shall be not less than ninety-one percent of 
51the wage in effect under section 1; and (2) an additional amount on account of the tips received 
52by such employee, which amount is at least the difference between the wage specified in clause 
53(l) and the wage in effect under section 1, with payments to the employee to be consistent with 
54section 148 of chapter 149. This paragraph shall not apply with respect to any tipped employee 
55unless such employee has been informed by the employer of the provisions of this paragraph,  5 of 9
56and all tips received by such employee have been retained by the employee, except that this 
57paragraph shall not be construed to prohibit the pooling of tips among employees who 
58customarily and regularly receive tips.
59 SECTION 5.
60 Said section 7 of said chapter 151 is hereby amended by striking the third paragraph and 
61inserting in place thereof the following paragraph:-
62 In determining the wage an employer is required to pay a tipped employee, the amount 
63paid to such employee by the employer shall be an amount equal to: (1) the cash wage paid such 
64employee, which for purposes of such determination shall be not less than one hundred percent 
65of the wage in effect under section 1; and (2) an additional amount on account of the tips 
66received by such employee, with payments to the employee to be consistent with section 148 of 
67chapter 149. This paragraph shall not be construed to prohibit the pooling of tips among 
68employees who customarily and regularly receive tips.
69 SECTION 6.
70 Section 152A of Chapter 149 of the General Laws is hereby amended by striking 
71paragraph (c) and inserting in place thereof the following paragraph:-
72 (c) Provided that an employer is paying all employees a wage that is not less than the full 
73minimum wage as provided in section 1 of chapter 151, the employer may require that wait staff 
74employees, service employees or service bartenders participate in a tip pool through which such 
75employee remits any wage, tip or service charge, or any portion thereof, for distribution to 
76employees that are not wait staff employees, service employees or service bartenders. An  6 of 9
77employer may administer a valid tip pool and may keep a record of the amounts received for 
78bookkeeping or tax reporting purposes.
79 SECTION 7.
80 Sections 1 and 6 shall take effect on January 1, 2025.
81 SECTION 8.
82 Section 2 shall take effect on January 1, 2026.
83 SECTION 9.
84 Section 3 shall take effect on January 1, 2027.
85 SECTION 10.
86 Section 4 shall take effect on January l, 2028.
87 SECTION 11.
88 Section 5 shall take effect on January 1, 2029. 7 of 9
FIRST TEN SIGNERS
NAMERESIDENCECITY OR TOWNIRENE S. LI141 SUTHERLAND ROAD, # 3BOSTONSHEILA IRVIN63 COMMONWEALTH AVENUEPITTSFIELDDAN J. TOTTEN54 BISHOP ALLEN DRIVE, # 2CAMBRIDGESITARA NAHEED354 RINDGE AVENUE, # 1CAMBRIDGEJUNE M. BILLIEL9 EDGEMERE ROADQUINCYSUNIEL S OTO-POL38 SILVER ROADEVERETTELLEN C. PROODIAN18 DANBY ROADSTONEHAMCAROL L. LEVINE270 L ITTLETON R OAD, # 183CHELMSFORDLUCIA G ARDINER RAY37 CHERRY S TREETSOMERVILLEMADELINE CLAIRE HANAFIN125 PLEASANT STREET, # 105ARLINGTON 8 of 9
CERTIFICATE OF THE ATTORNEY GENERAL.
Honorable William Francis Galvin
Secretary of the Commonwealth
One Ashburton Place, Room 1705
Boston, Massachusetts 02108
RE: Initiative Petition No. 23-12 : An Act to require the full minimum wage 
for tipped workers with tips on top
Dear Secretary Galvin:
In accordance with the provisions of Article 48 of the Amendments to 
the Massachusetts Constitution, I have reviewed the above-referenced initiative 
petition, which was submitted to me on or before the first Wednesday of August 
of this year.
I hereby certify that this measure is in proper form for submission to 
the people; that the measure is not, either affirmatively or negatively, 
substantially the same as any measure which has been qualified for submission 
or submitted to the people at either of the two preceding biennial state elections; 
and that it contains only subjects that are related or are mutually dependent and 
which are not excluded from the initiative process pursuant to Article 48, the 
Initiative, Part 2, Section 2.
In accordance with Article 48, I enclose a fair, concise summary of the 
measure.
Sincerely,
ANDREA JOY CAMPBELL,
Attorney General. 9 of 9
Summary of 23-12
This proposed law would gradually increase the minimum hourly wage an 
employer must pay a tipped worker, over the course of five years, on the following 
schedule: - To 64% of the state minimum wage on January 1, 2025; - To 73% of 
the state minimum wage on January 1, 2026; - To 82% of the state minimum wage 
on January 1, 2027; - To 91% of the state minimum wage on January 1, 2028; and 
- To 100% of the state minimum wage on January 1, 2029. The proposed law 
would require employers to continue to pay tipped workers the difference between 
the state minimum wage and the total amount a tipped worker receives in hourly 
wages plus tips through the end of 2028. The proposed law would also permit 
employers to calculate this difference over the entire weekly or bi-weekly payroll 
period. The requirement to pay this difference would cease when the required 
hourly wage for tipped workers would become 100% of the state minimum wage 
on January 1, 2029. Under the proposed law, if an employer pays its workers an 
hourly wage that is at least the state minimum wage, the employer would be 
permitted to administer a “tip pool” that combines all the tips given by customers to 
tipped workers and distributes them among all the workers, including non-tipped 
workers.