Sec. 1201. TIPPED EMPLOYEES
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## SEC. 1201 TIPPED EMPLOYEES ###
(a)Prohibition on Keeping Tips Section 3(m) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)) is amended— ####
(1)by redesignating paragraphs
(1)and
(2)as clauses
(i)and (ii), respectively; ####
(2)by inserting “(1)” after “(m)”; ####
(3)by striking “ any employee. In determining ” and inserting the following: > “any employee. > > > #### “(2) > > > #####
(A)> > In determining” > ; ####
(4)in clause
(ii)of paragraph (2)(A) (as so redesignated), by striking “paragraph (1)” and inserting “clause (i)”; and ####
(5)by adding at the end the following: > > ##### “(B) > > An employer may not keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit.” > . ###
(b)Penalties Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended— ####
(1)in subsection (b)— #####
(A)by inserting after the second sentence the following: “Any employer who violates section 3(m)(2)(B) shall be liable to the employee or employees affected in the amount of the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer, and in an additional equal amount as liquidated damages.”; and #####
(B)by striking “either of”; ####
(2)in subsection (c), by adding at the end the following: “The authority and requirements described in this subsection shall apply with respect to a violation of section 3(m)(2)(B), as appropriate, and the employer shall be liable for the amount of the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer, and an additional equal amount as liquidated damages.”; and ####
(3)in subsection (e)(2), by adding at the end the following: “Any person who violates section 3(m)(2)(B) shall be subject to a civil penalty not to exceed $1,100 for each such violation, as the Secretary determines appropriate, in addition to being liable to the employee or employees affected for all tips unlawfully kept, and an additional equal amount as liquidated damages, as described in subsection (b).”. ###
(c)Effect on Regulations **[**[29 U.S.C. 203 note](/us/usc/t29/s203)**]** The portions of the final rule promulgated by the Department of Labor entitled “Updating Regulations Issued Under the Fair Labor Standards Act” (76 Fed. Reg. 18832 (April 5, 2011)) that revised sections 531.52, 531.54, and 531.59 of title 29, Code of Federal Regulations (76 Fed. Reg. 18854-18856) and that are not addressed by section 3(m) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)) (as such section was in effect on April 5, 2011), shall have no further force or effect until any future action taken by the Administrator of the Wage and Hour Division of the Department of Labor. # TITLE XIII REVISIONS TO PASS-THROUGH PERIOD AND PAYMENT RULES
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- 76 FR 18832
- 76 FR 18854
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