| 1 | 1 | | 88R2303 KSD-D |
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| 2 | 2 | | By: Wu H.B. No. 545 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the payment of gratuities to tipped employees; |
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| 8 | 8 | | authorizing a civil penalty. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 61, Labor Code, is amended |
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| 11 | 11 | | by adding Section 61.021 to read as follows: |
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| 12 | 12 | | Sec. 61.021. GRATUITIES PAID TO TIPPED EMPLOYEE; PRIVATE |
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| 13 | 13 | | CAUSE OF ACTION; CIVIL PENALTY. (a) In this section, "tipped |
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| 14 | 14 | | employee" has the meaning assigned by Section 62.052. |
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| 15 | 15 | | (b) An employer may not retain any portion of gratuity paid |
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| 16 | 16 | | to or left for a tipped employee for any purpose, regardless of |
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| 17 | 17 | | whether the employer takes a tip credit against the payment of the |
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| 18 | 18 | | minimum wage to the employee. |
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| 19 | 19 | | (c) In addition to any other remedy provided by this |
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| 20 | 20 | | chapter, an employee aggrieved by an employer's violation of this |
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| 21 | 21 | | section may bring a cause of action against the employer. An |
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| 22 | 22 | | employee who prevails in an action brought under this subsection is |
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| 23 | 23 | | entitled to recover: |
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| 24 | 24 | | (1) the amount of any tip credit taken by the employer |
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| 25 | 25 | | on the employee; |
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| 26 | 26 | | (2) the amount of the gratuity retained by the |
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| 27 | 27 | | employer; |
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| 28 | 28 | | (3) an additional amount equal to the amount described |
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| 29 | 29 | | by Subdivision (2) as liquidated damages; |
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| 30 | 30 | | (4) court costs; and |
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| 31 | 31 | | (5) reasonable attorney's fees. |
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| 32 | 32 | | (d) An employer who violates this section is liable for a |
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| 33 | 33 | | civil penalty in the amount of $1,100 for each violation. |
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| 34 | 34 | | (e) An action to recover damages or a civil penalty under |
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| 35 | 35 | | this section must be brought not later than the second anniversary |
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| 36 | 36 | | of the date on which the gratuity was paid to or left for the |
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| 37 | 37 | | employee. |
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| 38 | 38 | | SECTION 2. Section 61.021, Labor Code, as added by this Act, |
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| 39 | 39 | | applies only to a gratuity paid to or left for an employee on or |
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| 40 | 40 | | after the effective date of this Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2023. |
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