Bill Text: NY A09439 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires notice from employers to customers of service charges and administrative fees that are not distributed to employees as gratuities.

Spectrum: Moderate Partisan Bill (Democrat 25-8)

Status: (Introduced - Dead) 2012-06-18 - print number 9439c [A09439 Detail]

Download: New_York-2011-A09439-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        9439--A
                                 I N  A S S E M B L Y
                                     March 1, 2012
                                      ___________
       Introduced  by  M.  of A. GOLDFEDER, MONTESANO, MURRAY, LAVINE, SCHIMEL,
         DenDEKKER, WEPRIN -- Multi-Sponsored by -- M.  of  A.  FITZPATRICK  --
         read  once  and  referred  to  the  Committee  on  Labor  -- committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN ACT to amend the labor law, in  relation  to  requiring  notice  from
         employers to customers of service charges and administration fees that
         are not distributed to employees as gratuities
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 196-d of the labor law, as added by chapter 1007 of
    2  the laws of 1968, is amended to read as follows:
    3    S 196-d. Gratuities. 1. AN  EMPLOYER  SHALL  NOT  BE  PROHIBITED  FROM
    4  ADDING  A MANDATORY GRATUITY AS LONG AS: (I) THE CHARGE IS CONSPICUOUSLY
    5  DISCLOSED TO THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED;  AND  (II)
    6  NO  EMPLOYER  OR  HIS  AGENT  OR AN OFFICER OR AGENT OF ANY CORPORATION,
    7  SHALL RETAIN ANY PORTION OF SUCH  GRATUITY.  THE  DISCLOSURE  SHALL  USE
    8  ORDINARY  LANGUAGE  READILY  UNDERSTOOD  AND SHALL APPEAR IN A TYPE SIZE
    9  SIMILAR TO SURROUNDING TEXT.
   10    2. No employer or his agent or an officer or agent of any corporation,
   11  or any other person shall demand or accept, directly or indirectly,  any
   12  part of the gratuities, received by an employee, or retain any part of a
   13  gratuity  or  of  any charge purported to be a gratuity for an employee.
   14  This provision shall not apply to the checking of hats, coats  or  other
   15  apparel. Nothing in this subdivision shall be construed as affecting the
   16  allowances from the minimum wage for gratuities in the amount determined
   17  in  accordance  with  the provisions of article nineteen of this chapter
   18  nor as affecting practices in connection with banquets and other special
   19  functions where a fixed percentage of the patron's  bill  is  added  for
   20  gratuities  which  are  distributed  to employees, nor to the sharing of
   21  tips by a waiter with a busboy or similar employee.   AN  EMPLOYER  THAT
   22  IMPOSES  A  MANDATORY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY OTHER
   23  SIMILAR CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES  MUST
   24  PROVIDE  WRITTEN  NOTICE  TO  CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14113-07-2
       A. 9439--A                          2
    1  SERVICES AND ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT  A  GRATUITY
    2  AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
    3  OR  IF  ONLY  A  PORTION OF THE CHARGE IS DISTRIBUTED AS GRATUITIES, THE
    4  PORTION  DISTRIBUTED  AS  GRATUITIES  MUST  BE IDENTIFIED.   THE WRITTEN
    5  NOTICE TO CUSTOMERS IN THE CONTRACT  OR  AGREEMENT  FOR  SERVICES  SHALL
    6  APPEAR  IN A TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE STATEMENTS
    7  IN THE CHECK OR INVOICE SHALL USE ORDINARY LANGUAGE  READILY  UNDERSTOOD
    8  AND  SHALL  APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.  NOTWITH-
    9  STANDING THE FOREGOING, PRIOR TO THE EFFECTIVE DATE OF A CHAPTER OF  THE
   10  LAWS  OF  TWO  THOUSAND  TWELVE THAT AMENDED THIS SECTION, ANY MANDATORY
   11  SERVICE OR ADMINISTRATIVE CHARGE, OR ANY MANDATORY FEE,  IMPOSED  BY  AN
   12  EMPLOYER AS PART OF A BANQUET SERVING TWENTY OR MORE GUESTS SHALL NOT BE
   13  DEEMED  A  GRATUITY  OR CHARGE PURPORTED TO BE A GRATUITY, AND SHALL NOT
   14  FORM THE BASIS OF ANY LIABILITY UNDER THIS SECTION, ANY OTHER  PROVISION
   15  OF  THIS CHAPTER OR ANY REGULATIONS IMPLEMENTED PURSUANT TO THIS CHAPTER
   16  DESPITE THE ABSENCE OF SUCH DISCLOSURE OR AS A RESULT OF  ANY  REPRESEN-
   17  TATION  MADE  BY ANY EMPLOYER OR HIS AGENT UNLESS SUCH MANDATORY SERVICE
   18  OR ADMINISTRATIVE CHARGE, OR ANY MANDATORY FEE, WAS SPECIFICALLY REPRES-
   19  ENTED IN WRITING TO BE A GRATUITY PAID TO  A  FOOD  SERVICE  WORKER,  AS
   20  DEFINED IN 12 N.Y.C.R.R. 146-3.4, BY THE EMPLOYER OR HIS AGENT.
   21    S  2.  This  act shall take effect on the thirtieth day after it shall
   22  have become a law.