bill bars employers from keeping any part of tips

The text as introduced · 267 words

89R5047 KKR-D

By: Simmons
H.B. No. 2472

A BILL TO BE ENTITLED

AN ACT

relating to the payment of gratuities to tipped employees; creating

a criminal offense.

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

SECTION 1. Subchapter B, Chapter 61, Labor Code, is amended

by adding Section 61.021 to read as follows:

Sec. 61.021. GRATUITIES PAID TO TIPPED EMPLOYEE; CRIMINAL

PENALTY. (a) In this section, "tipped employee" has the meaning

assigned by Section 62.052.

(b) An employer may not collect or receive any portion of a

gratuity paid to or left for a tipped employee for any purpose,

including for the purpose of compensating a credit or debit card

issuer for any financial services rendered on account of the

gratuity, regardless of whether the employer takes a tip credit

against the payment of the minimum wage to the employee. The

gratuity is the sole property of the tipped employee.

(c) An employer must pay to a tipped employee the amount of

any gratuity left for the employee by a customer who pays with a

credit or debit card not later than the employee's first payday

after the date on which the gratuity was authorized.

(d) An employer commits an offense if the employer violates

this section. An offense under this subsection is a felony of the

third degree.

(e) Each violation of this section is a separate offense.

SECTION 2. Section 61.021, Labor Code, as added by this Act,

applies only to conduct that occurs on or after the effective date

of this Act.

SECTION 3. This Act takes effect September 1, 2025.