HF 4625

as introduced - 91st Legislature (2019 - 2020) Posted on 05/04/2020 11:39am

A bill for an act
relating to employment; providing an exception to the gratuity sharing prohibition;
amending Minnesota Statutes 2018, section 177.24, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 177.24, subdivision 3, is amended to read:

Subd. 3.

Sharing of gratuities.

new text begin (a) new text end For purposes of this chapter, any gratuity received
by an employee or deposited in or about a place of business for personal services rendered
by an employee is the sole property of the employee. No employer may require an employee
to contribute or share a gratuity received by the employee with the employer or other
employees or to contribute any or all of the gratuity to a fund or pool operated for the benefit
of the employer or employees. This section does not prevent an employee from voluntarily
sharing gratuities with other employees. The agreement to share gratuities must be made
by the employees without employer coercion or participation, except that an employer may:

(1) upon the request of employees, safeguard gratuities to be shared by employees and
disburse shared gratuities to employees participating in the agreement;

(2) report the amounts received as required for tax purposes; and

(3) post a copy of this section for the information of employees.

new text begin (b) new text end The commissioner may require the employer to pay restitution in the amount of the
gratuities diverted. If the records maintained by the employer do not provide sufficient
information to determine the exact amount of gratuities diverted, the commissioner may
make a determination of gratuities diverted based on available evidence and mediate a
settlement with the employer.

new text begin (c) This section does not apply:
new text end

new text begin (1) when more than one direct service employee provides direct service to a customer
or customers in a given situation such as banquets, cocktail and food service combinations,
or other combinations, the money presented by customers, guests, or patrons as a gratuity
and divided among the direct service employees; or
new text end

new text begin (2) to food halls with multiple vendors and direct service providers with one point of
sale checkout.
new text end