SB 162: "An Act relating to payment of minimum wages to tipped employees; and providing for an effective date."

00SENATE 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).