HBA-EDN, MPM C.S.H.B. 94 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 94 By: Maxey Economic Development 4/5/2001 Committee Report (Substituted) 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. C.S.H.B. 94 requires employers to post in conspicuous places in the workplace a notice of these requirements, as prescribed by the Texas Workforce Commission (TWC), and authorizes TWC to assess an administrative penalty against an employer who fails to comply with the notice requirement. 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 C.S.H.B. 94 amends the Labor Code to require the Texas Workforce Commission (TWC) to prescribe a single notice containing certain information relating to payment of wages and designation of paydays for tipped employees and to make the notice available to affected employers not later than January 1, 2002. The bill requires employers who employ tipped employees (employer) to post a notice containing information relating to payment of wages in conspicuous places in the workplace. The notice must contain: _a statement that deductions from wages must be authorized in writing or be ordered by a governmental entity; _ information regarding the computation of overtime wages as set forth in the bill; _a statement that a deduction, other than a deduction ordered by a governmental entity, that reduces an employee's wages below the minimum wage is prohibited; _a statement that a deduction from tipped income is prohibited, except as ordered by a governmental entity or for a tip pooling arrangement; _a statement that authorizes only tips that are in excess of tips used for the tip credit to be contributed to a tip pool; _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 to a tip pool than is customary and reasonable; _a statement prohibiting a tip credit from being taken for an employee for hours in which the employee was performing duties unrelated to the duties for which a tip is received; _a statement that a tipped employee is not required to compensate the employer for any breakage, walkout without payment by a patron, complimentary meal, or economic loss unless ordered by a governmental entity; _a statement that the law forbids any arrangement between the employer and the tipped employee in which any part of the tip received becomes the property of the employer, that a tip is the sole property of the tipped employee, and that if an employer does not strictly observe the tip credit provisions of federal law, a tip credit may not be claimed and the employees are entitled to receive the full minimum wage and to retain all tips they should have received; _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 TWC's Internet site. The bill authorizes TWC to assess an administrative penalty against an employer in an amount not to exceed $1,000 per violation if, on the basis of a complaint received by TWC, TWC determines that an employer acted in bad faith by failing to post a notice as required by these provisions. EFFECTIVE DATE September 1, 2001. Provisions regarding the assessment of an administrative penalty take effect September 1, 2002. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 94 modifies the original by requiring the Texas Workforce Commission (TWC) to prescribe a single notice, containing information relating to payment of wages and designation of paydays for tipped employees. The substitute also modifies the information concerning payment of wages to tipped employees that is required to be posted in a notice in the workplace. The substitute deletes the requirement that an employer disseminate a brochure containing information required in the notice to employees. The substitute decreases from $10,000 to $1,000 the maximum amount of an administrative penalty that may be assessed against an employer per violation and authorizes TWC to assess such a penalty against an employer if on the basis of a complaint received by TWC and if TWC determines that the employer acted in bad faith by failing to post the required notice.