Gratuities - Privileges And Perquisites - Labor - CA

Section § 350

This section defines key terms related to employment in California. An 'employer' is someone running a business with at least one person working for them, under any kind of arrangement. An 'employee' is anyone working for an employer, paid or unpaid, including minors and non-citizens. 'Employing' simply means hiring or contracting someone for work. An 'agent' is a person other than the employer who has the power to hire, fire, or manage employees. 'Gratuity' refers to tips left by customers for employees, including payments made directly to dancers. 'Business' covers any setup where work is done, no matter its location.

As used in this article, unless the context indicates otherwise:

(a) “Employer” means every person engaged in any business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis.

(b) “Employee” means every person, including minors and persons who are not citizens or nationals of the United States, rendering actual service in any business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis.

(d) “Agent” means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.

(e) “Gratuity” includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.

(f) “Business” means any business establishment or enterprise, regardless of where conducted.

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Section § 351

This law ensures that tips given to employees by patrons are entirely for the employees and can't be taken or used by employers for any reason. Employers can't make deductions from an employee's pay based on the tips they make. If the tips are paid by credit card, the employer must give the full amount of the tip to the employee without deducting any credit card processing fees. These tips should be paid out no later than the next scheduled payday after the tip was given.

No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for. An employer that permits patrons to pay gratuities by credit card shall pay the employees the full amount of the gratuity that the patron indicated on the credit card slip, without any deductions for any credit card payment processing fees or costs that may be charged to the employer by the credit card company. Payment of gratuities made by patrons using credit cards shall be made to the employees not later than the next regular payday following the date the patron authorized the credit card payment.

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Section § 353

Employers in California must keep detailed records of all tips they receive. This includes tips given directly by employees or those deducted from wages. These records must be accessible for inspection by the relevant department during reasonable times.

Every employer shall keep accurate records of all gratuities received by him, whether received directly from the employee or indirectly by means of deductions from the wages of the employee or otherwise. Such records shall be open to inspection at all reasonable hours by the department.

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Section § 354

This law says that if an employer breaks any rule in this specific article, they can be charged with a misdemeanor. The punishment can be a fine of up to $1,000, up to 60 days in jail, or both.

Any employer who violates any provision of this article is guilty of a misdemeanor, punishable by a fine not exceeding one thousand dollars ($1,000) or by imprisonment for not exceeding 60 days, or both.

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Section § 355

This section explains that the Department of Industrial Relations is responsible for enforcing the rules in this article. Any fines they collect will be sent to the State treasury and added to the general fund.

The Department of Industrial Relations shall enforce the provisions of this article. All fines collected under this article shall be paid into the State treasury and credited to the general fund.

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Section § 356

This law is designed to stop fraud related to tipping practices. It states that regardless of private deals or agreements, these rules must be followed by everyone, including state departments, as part of California's social policy.

The Legislature expressly declares that the purpose of this article is to prevent fraud upon the public in connection with the practice of tipping and declares that this article is passed for a public reason and can not be contravened by a private agreement. As a part of the social public policy of this State, this article is binding upon all departments of the State.

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