A state legislator introduced a bill that would prohibit employers from taking any gratuity given to an employee and all gratuities paid by credit card would be paid in full by the employer to the employee, without deducting any credit card payment processing fees that the employer may incur.
State Rep. Dom Costa, D-Allegheny, was the primary sponsor of an amendment that adds to and defines gratuity in the Wage Payment and Collection Law as a “voluntary, monetary contribution received by an employee from a guest, patron or customer for services rendered.” The amendment also seeks to prohibit an employer from taking all or part of a gratuity or requiring an employee to credit the gratuity against their wages due the employee from the employer.
The amendment also adds a subsection that addresses gratuities paid via credit cards. The amendment states those gratuities are also the sole property of the employee and must be paid in full to the employee. The employer is prohibited from deducting any credit card payment processing fees or costs charged to the employer by the credit card company from the employee’s gratuity earnings.
The bill was referred to the Labor and Industry Committee on Jan. 9.
— Victoria Hudgins, of the Law Weekly •