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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted:	January 4, 2018 09:47 AM
From:	Representative Dom Costa
To:	All House members
Subject:	Gratuity Wage Protections

In the near future, I will be introducing legislation that will update the Wage Payment and Collection Law and protect gratuities earned by employees. Tipped wage workers work extremely hard and for long hours to earn their gratuities. Employers should not be allowed to use tips to cover their costs of operation. The increased use of credit cards will continue to have a major impact on the gratuities of tipped wage workers. The General Assembly must update the Wage Payment and Collection Law, so ever evolving technologies are not used to short employees of their gratuities. This legislation also clearly defines gratuity and ensures that any gratuity left is the property of the employee that it was left for. A current regulation change under review by the Department of Labor would allow employers to take control of gratuities and distribute them as they see fit. Under this proposed rule change, pooled tips could be distributed to employees who have no contact with guests to offset their wages, and may be used for non-wage related expenses such as structural improvements to the place of business itself. This change from employee to employer control of gratuities would be in stark contrast to how gratuities have been traditionally handled in Pennsylvania. The General Assembly must act to protect workers from this potential threat to the tipped wages they earn through hard work and the services they provide. Please join me in sponsoring this important legislation to update the Wage Payment and Collection Law and help protect our tipped wage earners.

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