HBA-EDN, MPM H.B. 94 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 94 By: Maxey Economic Development 2/26/2001 Introduced BACKGROUND AND PURPOSE Current law does not require an employer who employs tipped employees to post notice in the workplace of the requirements regarding the payment of wages. There is concern that such employees may not be aware of these requirements or the recourse that is available if they believe their rights have been violated. House Bill 94 requires employers to post in conspicuous places in the workplace a notice of these requirements, as prescribed by the Texas Workforce Commission, and provides an administrative penalty for an employer who fails to comply with these requirements. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 94 amends the Labor Code to require the Texas Workforce Commission (TWC) to prescribe a notice containing certain information for employers who employ tipped employees. The employers are required to post the notice in conspicuous places in the workplace. The notice must contain: _information regarding the computation of overtime wages as set forth in the bill; _a statement that a tipped employee is not required to share tips with other employees who have not participated in tip pooling arrangements; _a statement that a tipped employee is not required to contribute more than 15 percent of tips to a tip pool; _a statement that an employee employed in a dual job involving unrelated duties is a tipped employee only with respect to duties for which a tip is received; _a statement that a tipped employee employed at a restaurant is not required to compensate the restaurant for unintentional breakage or loss, walkout without payment by a patron, or complimentary meal given to a patron by the restaurant; and _the statement, "If you believe that your rights are being violated, you may contact the Texas Workforce Commission for assistance," as well as contact information for TWC, and the Internet address for the labor law information page of the Internet site. The bill requires employers to disseminate to tipped employees a brochure as prescribed by TWC which includes the information in the notice. The bill provides that there be one detachable page in the brochure to be signed by the tipped employee as an acknowledgment of receipt and that is to be placed in the employee's personnel records. TWC is required to prescribe the notice and the brochure no later than January 1, 2002. The bill authorizes TWC to assess an employer who fails to comply with the provisions of this bill with an administrative penalty not to exceed $10,000 per violation. EFFECTIVE DATE September 1, 2001. Provisions regarding the assessment of an administrative penalty take effect September 1, 2002.