Bill Text: HI SB2699 | 2024 | Regular Session | Introduced

Hawaii Senate Bill 2699

Introduced

Bill Title: Relating To Tip Apportionment.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-01-24 - Referred to LBT, CPN/JDC. [SB2699 Detail]

Download: Hawaii-2024-SB2699-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2699
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO tIP APPORTIONMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that more and more food and beverage and service-providing establishments are requesting or presenting the option of tipping employees. The public has expressed confusion regarding the details of their tipping in these establishments, resulting in decreased incentives for patrons to tip restaurant workers.

The legislature notes that according to some reporting, eighty to eighty-five per cent of transactions in local restaurants are paid through a credit card or other electronic payment, including tipping. When making payments by a credit card, many Hawaii residents experience "guilt tipping" at the end of a transaction when the cashier prompts the customer with a screen that lets the customer choose the percentage of a tip they would like to leave or no tip at all. This technology is shifting the cultural norms of tipping employees of food service establishments, with the result that information about the function of tip payments has become further shrouded in uncertainty for restaurant patrons. Given these evolving conditions, it is more important than ever for food service establishments to fully inform customers about the process and allocation of their tip spending.

The legislature notes that many Hawaii residents are concerned that the tips they contribute to restaurant workers at service establishments are not being allocated clearly. This has, in some cases, resulted in public complaints that prompt investigations by the United States Department of Labor. Hawaii News Now reported that a 2022 United States Department of Labor investigation recovered $117,710 in back wages and liquidated damages for seventy workers.

The legislature further finds that without accessible information relating to tip apportionment, it is increasingly difficult to ensure consumer protection and workers' rights amid the rising costs of living and increased business expenses following the COVID-19 pandemic.

Accordingly, the purpose of this Act is to establish a requirement for clear and accessible notice of tip apportionment in food service establishments so that management may be held accountable to employees and restaurant patrons.

SECTION 2. Chapter 387, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§387- Tip allocation disclosure. Each food establishment that accepts tips shall post, in a publicly visible location in which patrons are likely to see, a detailed explanation of the allocation of tips, including the employment positions for employees who receive a portion of any tip and that percentage or amount."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on January 1, 2025.

INTRODUCED BY:	_____________________________

Report Title:

Department of Health; Tips; Allocation; Disclosure; Food Establishments; Restaurants

Description:

Requires food establishments to publicly disclose how tips are allocated among employees. Effective 1/1/25.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.