HBA-EDN, MPM H.B. 94 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 94
By: Maxey
Economic Development
2/26/2001
Introduced



BACKGROUND AND PURPOSE 

Current law does not require an employer who employs tipped employees to
post notice in the workplace of the requirements regarding the payment of
wages.  There is concern that such employees may not be aware of these
requirements or the recourse that is available if they believe their rights
have been violated. House Bill 94 requires employers to post in conspicuous
places in the workplace a notice of these requirements, as prescribed by
the Texas Workforce Commission,  and provides an administrative penalty for
an employer who fails to comply with these requirements.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 94 amends the Labor Code to require the Texas Workforce
Commission (TWC) to prescribe a notice containing certain information for
employers who employ tipped employees.  The employers are required to post
the notice in conspicuous places in the workplace.  The notice must
contain: 

_information regarding the computation of overtime wages as set forth in
the bill; 

_a statement that a tipped employee is not required to share tips with
other employees who have not participated in tip pooling arrangements; 

_a statement that a tipped employee is not required to contribute more than
15 percent of tips to a tip pool; 

_a statement that an employee employed in a dual job involving unrelated
duties is a tipped employee only with respect to duties for which a tip is
received; 

_a statement that a tipped employee employed at a restaurant is not
required to compensate the restaurant for unintentional breakage or loss,
walkout without payment by a patron, or complimentary meal given to a
patron by the restaurant; and 

_the statement, "If you believe that your rights are being violated, you
may contact the Texas Workforce Commission for assistance," as well as
contact information for TWC, and the Internet address for the labor law
information page of the Internet site. 

The bill requires employers to disseminate to tipped employees a brochure
as prescribed by TWC which includes the information in the notice.  The
bill provides that there be one detachable page in the brochure to be
signed by the tipped employee as an acknowledgment of receipt and that is
to be placed in the employee's personnel records.  TWC is required to
prescribe the notice and the brochure no later than January 1, 2002. 
 
The bill authorizes TWC to assess an employer who fails to comply with the
provisions of this bill with an administrative penalty not to exceed
$10,000 per violation. 

EFFECTIVE DATE

September 1, 2001.  Provisions regarding the assessment of an
administrative penalty take effect September 1, 2002.