00 SENATE BILL NO. 162                                                                                                     
01 "An Act relating to payment of minimum wages to tipped employees; and                                                   
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  This Act may be cited as the Tip Credit Act of 1997.                                                   
05    * Sec. 2.  AS 23.10.065(a) is amended to read:                                                                       
06  (a)  Except as provided under (b) and (d) of this section, an employer shall pay                                    
07 to each employee wages at a rate of not less than 50 cents an hour greater than the                                     
08 prevailing Federal Minimum Wage Law for hours worked in a pay period, whether the                                       
09 work is measured by time, piece, commission, or otherwise.  [AN EMPLOYER MAY                                            
10 NOT APPLY TIPS OR GRATUITIES BESTOWED UPON EMPLOYEES AS A                                                               
11 CREDIT TOWARD PAYMENT OF THE MINIMUM HOURLY WAGE REQUIRED                                                               
12 BY THIS SECTION.  TIP CREDIT AS DEFINED BY THE FAIR LABOR                                                               
13 STANDARDS ACT OF 1938 AS AMENDED DOES NOT APPLY TO THE                                                                  
14 MINIMUM WAGE ESTABLISHED BY THIS SECTION.]                                                                              
01    * Sec. 3.  AS 23.10.065 is amended by adding a new subsection to read:                                               
02  (d)  An employer must pay a tipped employee a minimum wage of at least                                                
03 $5.25 an hour and, if the employee does not receive an amount in tips that is sufficient                                
04 to increase the employee's wage rate to the minimum wage under (a) of this section,                                     
05 the additional amount necessary to raise the employee's wage to the minimum wage                                        
06 under (a) of this section.                                                                                              
07    * Sec. 4.  This Act applies to work performed on or after the effective date of this Act.                            
08    * Sec. 5.  This Act takes effect immediately under AS 01.10.070(c).