A09439 Summary:

BILL NOA09439C
 
SAME ASNo same as
 
SPONSORGoldfeder
 
COSPNSRMontesano, Murray, Lavine, Schimel, DenDekker, Weprin, Moya, Braunstein, Weisenberg, Simanowitz, Cook, Ryan, Cusick, Brook-Krasny, Brindisi, Espinal, Titus, Clark, Aubry, Scarborough, Miller M, Maisel, Hevesi, Simotas, Cymbrowitz
 
MLTSPNSRFitzpatrick, Losquadro, McDonough, Nolan, Ra, Raia, Saladino
 
Amd S196-d, Lab L
 
Requires notice from employers to customers of service charges and administrative fees that are not distributed to employees as gratuities.
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A09439 Actions:

BILL NOA09439C
 
03/01/2012referred to labor
05/07/2012amend and recommit to labor
05/07/2012print number 9439a
06/04/2012amend and recommit to labor
06/04/2012print number 9439b
06/18/2012amend and recommit to labor
06/18/2012print number 9439c
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A09439 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9439--C
 
                   IN ASSEMBLY
 
                                      March 1, 2012
                                       ___________
 
        Introduced  by  M.  of A. GOLDFEDER, MONTESANO, MURRAY, LAVINE, SCHIMEL,
          DenDEKKER, WEPRIN, MOYA,  BRAUNSTEIN,  WEISENBERG,  SIMANOWITZ,  COOK,
          RYAN,  CUSICK,  BROOK-KRASNY,  BRINDISI, ESPINAL, TITUS, CLARK, AUBRY,
          SCARBOROUGH, M. MILLER, MAISEL, HEVESI, SIMOTAS, CYMBROWITZ --  Multi-
          Sponsored by -- M. of A. FITZPATRICK, LOSQUADRO, McDONOUGH, NOLAN, RA,

          RAIA,  SALADINO -- read once and referred to the Committee on Labor --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted  to  said  committee -- again reported from said committee
          with amendments, ordered reprinted as amended and recommitted to  said
          committee  --  again  reported  from  said  committee with amendments,
          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    § 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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14113-19-2

        A. 9439--C                          2
 
     1  functions where a fixed percentage of the patron's  bill  is  added  for
     2  gratuities  which  are  distributed  to employees, nor to the sharing of
     3  tips by a waiter with a busboy or similar employee.   An  employer  that

     4  imposes  a  mandatory  service  charge, administrative fee, or any other
     5  similar charge which is not distributed to employees as gratuities  must
     6  provide  written  notice  to  customers in the contract or agreement for
     7  services and on the check or invoice that the charge is not  a  gratuity
     8  and will not be distributed to employees who provided service to guests,
     9  or  if  only  a  portion of the charge is distributed as gratuities, the
    10  portion distributed as gratuities must be identified. The written notice
    11  to customers in the contract or agreement for services shall appear in a
    12  type size no smaller than twelve point type. The statements in the check
    13  or invoice shall use ordinary  language  readily  understood  and  shall

    14  appear in a type size similar to surrounding text.
    15    3.  It shall be an affirmative defense to any cause of action based on
    16  a claim arising prior to January first, two thousand eleven and alleging
    17  that a charge for the administration of a banquet, special  function  or
    18  package  deal  was  a  gratuity  that  (a) it was not represented to the
    19  customer that the charge was a gratuity; (b) the employer charged  sales
    20  tax  in  accordance with the applicable provisions of the tax law on the
    21  charge; (c) the employer included  the  charge  as  part  of  its  gross
    22  receipts,  upon  which  income  tax was calculated; and (d) the employer
    23  complied with section six hundred fifty-two of this chapter.

    24    § 2. This act shall take effect on the thirtieth day  after  it  shall
    25  have become a law.
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