Assembly Bill A2179E

2013-2014 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2014	print number 2179e
May 20, 2014	amend and recommit to labor
Jan 08, 2014	referred to labor
Jun 17, 2013	print number 2179d
Jun 17, 2013	amend and recommit to labor print number 2179c
Jun 17, 2013	amend and recommit to labor
May 23, 2013	print number 2179b
May 23, 2013	amend and recommit to labor
May 09, 2013	print number 2179a
May 09, 2013	amend and recommit to labor
Jan 09, 2013	referred to labor

Bill Amendments

Original

E (Active)

co-Sponsors

View additional co-sponsors

multi-Sponsors

2013-A2179 - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179 - Summary

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

2013-A2179 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2179

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  GOLDFEDER, MONTESANO, WEPRIN, COOK, ESPINAL,
  CLARK, MOYA, RYAN,  TITUS,  AUBRY,  SCARBOROUGH,  LAVINE,  BRAUNSTEIN,
  CUSICK,  MILLER,  MAISEL,  SCHIMEL,  WEISENBERG, BROOK-KRASNY, HEVESI,
  DenDEKKER, SIMANOWITZ, BRINDISI, SIMOTAS, CYMBROWITZ -- read once  and
  referred to the Committee on Labor

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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S  196-d.  Gratuities.  1.  AN  EMPLOYER  SHALL NOT BE PROHIBITED FROM
ADDING A MANDATORY GRATUITY AS LONG AS: (I) THE CHARGE IS  CONSPICUOUSLY
DISCLOSED  TO  THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED; AND (II)
NO EMPLOYER OR HIS AGENT OR AN OFFICER  OR  AGENT  OF  ANY  CORPORATION,
SHALL  RETAIN  ANY  PORTION  OF  SUCH GRATUITY. THE DISCLOSURE SHALL USE
ORDINARY LANGUAGE READILY UNDERSTOOD AND SHALL APPEAR  IN  A  TYPE  SIZE
SIMILAR TO SURROUNDING TEXT.
  2. No employer or his agent or an officer or agent of any corporation,
or  any other person shall demand or accept, directly or indirectly, any
part of the gratuities, received by an employee, or retain any part of a
gratuity or of any charge purported to be a gratuity  for  an  employee.
This  provision  shall not apply to the checking of hats, coats or other
apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined
in accordance with the provisions of article nineteen  of  this  chapter
nor as affecting practices in connection with banquets and other special
functions  where  a  fixed  percentage of the patron's bill is added for
gratuities which are distributed to employees, nor  to  the  sharing  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-01-3

A. 2179                             2

tips  by  a  waiter with a busboy or similar employee.  AN EMPLOYER THAT
IMPOSES A MANDATORY SERVICE CHARGE, ADMINISTRATIVE  FEE,  OR  ANY  OTHER
SIMILAR  CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES MUST
PROVIDE  WRITTEN  NOTICE  TO  CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR
SERVICES AND ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT  A  GRATUITY
AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
OR  IF  ONLY  A  PORTION OF THE CHARGE IS DISTRIBUTED AS GRATUITIES, THE
PORTION DISTRIBUTED AS GRATUITIES MUST BE IDENTIFIED. THE WRITTEN NOTICE
TO CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR SERVICES SHALL APPEAR IN A
TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE STATEMENTS IN THE CHECK
OR INVOICE SHALL USE ORDINARY  LANGUAGE  READILY  UNDERSTOOD  AND  SHALL
APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  3.  IT SHALL BE AN AFFIRMATIVE DEFENSE TO ANY CAUSE OF ACTION BASED ON
A CLAIM ARISING PRIOR TO JANUARY FIRST, TWO THOUSAND THIRTEEN AND ALLEG-
ING THAT A CHARGE FOR THE ADMINISTRATION OF A BANQUET, SPECIAL  FUNCTION
OR  PACKAGE  DEAL  WAS A GRATUITY THAT (A) IT WAS NOT REPRESENTED TO THE
CUSTOMER THAT THE CHARGE WAS A GRATUITY; (B) THE EMPLOYER CHARGED  SALES
TAX  IN  ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE TAX LAW ON THE
CHARGE; (C) THE EMPLOYER INCLUDED  THE  CHARGE  AS  PART  OF  ITS  GROSS
RECEIPTS,  UPON  WHICH  INCOME  TAX WAS CALCULATED; AND (D) THE EMPLOYER
COMPLIED WITH SECTION SIX HUNDRED FIFTY-TWO OF THIS CHAPTER.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2013-A2179A - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179A - Summary

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

2013-A2179A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2179--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  GOLDFEDER, MONTESANO, WEPRIN, COOK, ESPINAL,
  CLARK, MOYA, RYAN,  TITUS,  AUBRY,  SCARBOROUGH,  LAVINE,  BRAUNSTEIN,
  CUSICK,  MILLER,  MAISEL,  SCHIMEL,  WEISENBERG, BROOK-KRASNY, HEVESI,
  DenDEKKER, SIMANOWITZ, BRINDISI, SIMOTAS, CYMBROWITZ, THIELE, BENEDET-
  TO, ENGLEBRIGHT, KIM -- Multi-Sponsored by -- M. of A.  RA,  RAMOS  --
  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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S 196-d. Gratuities. 1. AN  EMPLOYER  SHALL  NOT  BE  PROHIBITED  FROM
ADDING  A  MANDATORY  GRATUITY  AS  LONG AS: THE CHARGE IS CONSPICUOUSLY
DISCLOSED TO THE CUSTOMER BEFORE FOOD  OR  BEVERAGE  IS  ORDERED.    THE
DISCLOSURE  SHALL  USE  ORDINARY  LANGUAGE  READILY UNDERSTOOD AND SHALL
APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  2. No employer or his agent or an officer or agent of any corporation,
or any other person shall demand or accept, directly or indirectly,  any
part of the gratuities, received by an employee, or retain any part of a
gratuity  or  of  any charge purported to be a gratuity for an employee.
This provision shall not apply to the checking of hats, coats  or  other
apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined
in  accordance  with  the provisions of article nineteen of this chapter
nor as affecting practices in connection with banquets and other special
functions where a fixed percentage of the patron's  bill  is  added  for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-05-3

A. 2179--A                          2

gratuities  which  are  distributed  to employees, nor to the sharing of
tips by a waiter with a busboy or similar employee.   AN  EMPLOYER  THAT
IMPOSES  A  MANDATORY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY OTHER
SIMILAR  CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES MUST
PROVIDE WRITTEN NOTICE TO CUSTOMERS IN THE  CONTRACT  OR  AGREEMENT  FOR
SERVICES  THAT  THE CHARGE IS NOT A GRATUITY AND WILL NOT BE DISTRIBUTED
TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS, OR IF ONLY A PORTION OF THE
CHARGE IS DISTRIBUTED AS GRATUITIES, THE PORTION DISTRIBUTED AS  GRATUI-
TIES  MUST  BE  IDENTIFIED.    THE  WRITTEN  NOTICE  TO CUSTOMERS IN THE
CONTRACT OR AGREEMENT FOR SERVICES SHALL APPEAR IN A TYPE SIZE NO SMALL-
ER THAN TWELVE POINT TYPE. THE STATEMENTS SHALL  USE  ORDINARY  LANGUAGE
READILY  UNDERSTOOD AND SHALL APPEAR IN A TYPE SIZE SIMILAR TO SURROUND-
ING TEXT.
  3. NOTWITHSTANDING THE FOREGOING, THERE SHALL BE NO LIABILITY  TO  ANY
ACTION  ALLEGING  THAT  ANY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY
OTHER SIMILAR CHARGE IMPOSED AS PART OF A BANQUET HELD PRIOR TO  JANUARY
FIRST,  TWO THOUSAND ELEVEN WAS A GRATUITY, IF THE EMPLOYER PROVES AS AN
AFFIRMATIVE DEFENSE THAT ALL OF THE FOLLOWING CONDITIONS WERE  MET:  (A)
THE  EMPLOYER  OR  EMPLOYER'S  AGENT  DID NOT EXPRESSLY REPRESENT TO THE
CUSTOMER THAT THE CHARGE WAS A GRATUITY; (B) THE EMPLOYER CHARGED  SALES
TAX  IN  ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE TAX LAW ON THE
CHARGE; (C) THE EMPLOYER INCLUDED  THE  CHARGE  AS  PART  OF  ITS  GROSS
RECEIPTS,  UPON  WHICH  INCOME  TAX WAS CALCULATED; AND (D) THE EMPLOYER
PAID FOOD SERVICE WORKERS WAGES SET FORTH IN SECTION SIX HUNDRED  FIFTY-
TWO OF THIS CHAPTER.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2013-A2179B - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179B - Summary

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

2013-A2179B - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2179--B

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  GOLDFEDER, MONTESANO, WEPRIN, COOK, ESPINAL,
  CLARK, RYAN, TITUS, AUBRY, SCARBOROUGH,  LAVINE,  BRAUNSTEIN,  CUSICK,
  MILLER, MAISEL, SCHIMEL, WEISENBERG, BROOK-KRASNY, DenDEKKER, SIMANOW-
  ITZ,  BRINDISI,  SIMOTAS,  CYMBROWITZ, THIELE, BENEDETTO, ENGLEBRIGHT,
  KIM -- Multi-Sponsored by -- M. of A.  RA,  RAMOS  --  read  once  and
  referred  to  the  Committee  on  Labor  -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S 196-d. Gratuities. 1. AN  EMPLOYER  SHALL  NOT  BE  PROHIBITED  FROM
ADDING  A MANDATORY GRATUITY AS LONG AS: (A) THE CHARGE IS CONSPICUOUSLY
DISCLOSED TO THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED; AND (B) NO
EMPLOYER OR HIS AGENT OR AN OFFICER OR AGENT OF ANY  CORPORATION,  SHALL
RETAIN  ANY  PORTION OF SUCH GRATUITY. THE DISCLOSURE SHALL USE ORDINARY
LANGUAGE READILY UNDERSTOOD AND SHALL APPEAR IN A TYPE SIZE  SIMILAR  TO
SURROUNDING TEXT.
  2. No employer or his agent or an officer or agent of any corporation,
or  any other person shall demand or accept, directly or indirectly, any
part of the gratuities, received by an employee, or retain any part of a
gratuity or of any charge purported to be a gratuity  for  an  employee.
This  provision  shall not apply to the checking of hats, coats or other
apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-06-3

A. 2179--B                          2

in accordance with the provisions of article nineteen  of  this  chapter
nor as affecting practices in connection with banquets and other special
functions  where  a  fixed  percentage of the patron's bill is added for
gratuities  which  are  distributed  to employees, nor to the sharing of
tips by a waiter with a busboy or similar employee.   AN  EMPLOYER  THAT
IMPOSES  A  MANDATORY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY OTHER
SIMILAR CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES  MUST
PROVIDE  WRITTEN  NOTICE  TO  CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR
SERVICES AND ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT  A  GRATUITY
AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
OR  IF  ONLY  A  PORTION OF THE CHARGE IS DISTRIBUTED AS GRATUITIES, THE
PORTION DISTRIBUTED AS GRATUITIES  MUST  BE  IDENTIFIED.    THE  WRITTEN
NOTICE  TO  CUSTOMERS  IN  THE  CONTRACT OR AGREEMENT FOR SERVICES SHALL
APPEAR IN A TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE  STATEMENTS
IN  THE  CHECK OR INVOICE SHALL USE ORDINARY LANGUAGE READILY UNDERSTOOD
AND SHALL APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  3. NOTWITHSTANDING THE FOREGOING, THERE SHALL BE NO LIABILITY  TO  ANY
ACTION  ALLEGING  THAT  ANY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY
OTHER SIMILAR CHARGE IMPOSED AS PART OF A BANQUET HELD PRIOR TO  JANUARY
FIRST,  TWO THOUSAND ELEVEN WAS A GRATUITY, IF THE EMPLOYER PROVES AS AN
AFFIRMATIVE DEFENSE THAT ALL OF THE FOLLOWING CONDITIONS WERE  MET:  (A)
THE  EMPLOYER  OR  EMPLOYER'S  AGENT  DID NOT EXPRESSLY REPRESENT TO THE
CUSTOMER THAT THE CHARGE WAS A GRATUITY; (B) THE EMPLOYER CHARGED  SALES
TAX  IN  ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE TAX LAW ON THE
CHARGE; (C) THE EMPLOYER INCLUDED  THE  CHARGE  AS  PART  OF  ITS  GROSS
RECEIPTS,  UPON  WHICH  INCOME  TAX WAS CALCULATED; AND (D) THE EMPLOYER
PAID FOOD SERVICE WORKERS WAGES SET FORTH IN SECTION SIX HUNDRED  FIFTY-
TWO OF THIS CHAPTER.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2013-A2179C - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179C - Summary

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

2013-A2179C - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2179--C

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  GOLDFEDER, MONTESANO, WEPRIN, COOK, ESPINAL,
  CLARK, RYAN, TITUS, AUBRY, SCARBOROUGH,  LAVINE,  BRAUNSTEIN,  CUSICK,
  MILLER, MAISEL, SCHIMEL, WEISENBERG, BROOK-KRASNY, DenDEKKER, SIMANOW-
  ITZ,  BRINDISI,  SIMOTAS, CYMBROWITZ, THIELE, BENEDETTO, KIM, MORELLE,
  SALADINO, RAIA -- Multi-Sponsored by -- M. of A. McDONALD, RA,  SANTA-
  BARBARA -- read once and referred to the Committee on Labor -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted 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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S  196-d.  Gratuities.  1.  AN  EMPLOYER  SHALL NOT BE PROHIBITED FROM
ADDING A MANDATORY GRATUITY AS LONG AS: (I) THE CHARGE IS  CONSPICUOUSLY
DISCLOSED  TO  THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED; AND (II)
NO EMPLOYER OR HIS AGENT OR AN OFFICER  OR  AGENT  OF  ANY  CORPORATION,
SHALL  RETAIN  ANY  PORTION  OF  SUCH GRATUITY. THE DISCLOSURE SHALL USE
ORDINARY LANGUAGE READILY UNDERSTOOD AND SHALL APPEAR  IN  A  TYPE  SIZE
SIMILAR TO SURROUNDING TEXT.
  2. No employer or his agent or an officer or agent of any corporation,
or  any other person shall demand or accept, directly or indirectly, any
part of the gratuities, received by an employee, or retain any part of a
gratuity or of any charge purported to be a gratuity  for  an  employee.
This  provision  shall not apply to the checking of hats, coats or other

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-07-3

A. 2179--C                          2

apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined
in accordance with the provisions of article nineteen  of  this  chapter
nor as affecting practices in connection with banquets and other special
functions  where  a  fixed  percentage of the patron's bill is added for
gratuities which are distributed to employees, nor  to  the  sharing  of
tips  by  a  waiter with a busboy or similar employee.  AN EMPLOYER THAT
IMPOSES A MANDATORY SERVICE CHARGE, ADMINISTRATIVE  FEE,  OR  ANY  OTHER
SIMILAR  CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES MUST
PROVIDE WRITTEN NOTICE TO CUSTOMERS IN THE  CONTRACT  OR  AGREEMENT  FOR
SERVICES  AND  ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT A GRATUITY
AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
OR IF ONLY A PORTION OF THE CHARGE IS  DISTRIBUTED  AS  GRATUITIES,  THE
PORTION DISTRIBUTED AS GRATUITIES MUST BE IDENTIFIED. THE WRITTEN NOTICE
TO CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR SERVICES SHALL APPEAR IN A
TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE STATEMENTS IN THE CHECK
OR  INVOICE  SHALL  USE  ORDINARY  LANGUAGE READILY UNDERSTOOD AND SHALL
APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  3. IT SHALL BE AN AFFIRMATIVE DEFENSE TO ANY  COURT  ACTION  COMMENCED
PRIOR  TO  JANUARY FIRST, TWO THOUSAND TWELVE AND ALLEGING THAT A CHARGE
FOR THE ADMINISTRATION OF A BANQUET, SPECIAL FUNCTION  OR  PACKAGE  DEAL
WAS  A  GRATUITY  THAT  (A) BASED ON ALL THE CIRCUMSTANCES, A REASONABLE
CUSTOMER WOULD UNDERSTAND THAT SUCH CHARGE WAS NOT A GRATUITY;  (B)  THE
EMPLOYER  CHARGED SALES TAX IN ACCORDANCE WITH THE APPLICABLE PROVISIONS
OF THE TAX LAW ON THE CHARGE; (C) THE EMPLOYER INCLUDED  THE  CHARGE  AS
PART  OF  ITS  GROSS RECEIPTS, UPON WHICH INCOME TAX WAS CALCULATED; AND
(D) THE EMPLOYER COMPLIED WITH ARTICLE NINETEEN OF THIS CHAPTER AND  THE
REGULATIONS PROMULGATED THEREUNDER.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2013-A2179D - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179D - Summary

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

2013-A2179D - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2179--D

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  GOLDFEDER, MONTESANO, WEPRIN, COOK, ESPINAL,
  CLARK, RYAN, TITUS, AUBRY, SCARBOROUGH,  LAVINE,  BRAUNSTEIN,  CUSICK,
  MILLER, MAISEL, SCHIMEL, WEISENBERG, BROOK-KRASNY, DenDEKKER, SIMANOW-
  ITZ,  BRINDISI,  SIMOTAS, CYMBROWITZ, THIELE, BENEDETTO, KIM, MORELLE,
  SALADINO, RAIA -- Multi-Sponsored by -- M. of A. McDONALD, RA,  SANTA-
  BARBARA -- read once and referred to the Committee on Labor -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted 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 --
  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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S  196-d.  Gratuities.  1.  AN  EMPLOYER  SHALL NOT BE PROHIBITED FROM
ADDING A MANDATORY GRATUITY AS LONG AS: (I) THE CHARGE IS  CONSPICUOUSLY
DISCLOSED  TO  THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED; AND (II)
NO EMPLOYER OR HIS AGENT OR AN OFFICER  OR  AGENT  OF  ANY  CORPORATION,
SHALL  RETAIN  ANY  PORTION  OF  SUCH GRATUITY. THE DISCLOSURE SHALL USE
ORDINARY LANGUAGE READILY UNDERSTOOD AND SHALL APPEAR  IN  A  TYPE  SIZE
SIMILAR TO SURROUNDING TEXT.
  2. No employer or his agent or an officer or agent of any corporation,
or  any other person shall demand or accept, directly or indirectly, any
part of the gratuities, received by an employee, or retain any part of a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-09-3

A. 2179--D                          2

gratuity or of any charge purported to be a gratuity  for  an  employee.
This  provision  shall not apply to the checking of hats, coats or other
apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined
in  accordance  with  the provisions of article nineteen of this chapter
nor as affecting practices in connection with banquets and other special
functions where a fixed percentage of the patron's  bill  is  added  for
gratuities  which  are  distributed  to employees, nor to the sharing of
tips by a waiter with a busboy or similar employee.   AN  EMPLOYER  THAT
IMPOSES  A  MANDATORY  SERVICE  CHARGE, ADMINISTRATIVE FEE, OR ANY OTHER
SIMILAR CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES  MUST
PROVIDE  WRITTEN  NOTICE  TO  CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR
SERVICES AND ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT  A  GRATUITY
AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
OR  IF  ONLY  A  PORTION OF THE CHARGE IS DISTRIBUTED AS GRATUITIES, THE
PORTION DISTRIBUTED AS GRATUITIES MUST BE IDENTIFIED. THE WRITTEN NOTICE
TO CUSTOMERS IN THE CONTRACT OR AGREEMENT FOR SERVICES SHALL APPEAR IN A
TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE STATEMENTS IN THE CHECK
OR INVOICE SHALL USE ORDINARY  LANGUAGE  READILY  UNDERSTOOD  AND  SHALL
APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  3.  IT  SHALL  BE AN AFFIRMATIVE DEFENSE TO ANY COURT ACTION COMMENCED
PRIOR TO JANUARY FIRST, TWO THOUSAND ELEVEN AND ALLEGING THAT  A  CHARGE
FOR  THE  ADMINISTRATION  OF A BANQUET, SPECIAL FUNCTION OR PACKAGE DEAL
WAS A GRATUITY THAT (A) BASED ON ALL  THE  CIRCUMSTANCES,  A  REASONABLE
CUSTOMER  WOULD  UNDERSTAND THAT SUCH CHARGE WAS NOT A GRATUITY; (B) THE
EMPLOYER CHARGED SALES TAX IN ACCORDANCE WITH THE APPLICABLE  PROVISIONS
OF  THE  TAX  LAW ON THE CHARGE; (C) THE EMPLOYER INCLUDED THE CHARGE AS
PART OF ITS GROSS RECEIPTS, UPON WHICH INCOME TAX  WAS  CALCULATED;  AND
(D)  THE EMPLOYER COMPLIED WITH ARTICLE NINETEEN OF THIS CHAPTER AND THE
REGULATIONS PROMULGATED THEREUNDER.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

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2013-A2179E (ACTIVE) - Details

See Senate Version of this Bill:: S3109
Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §196-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7791
2015-2016: A3773

2013-A2179E (ACTIVE) - Summary

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

2013-A2179E (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2179--E

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by M. of A. GOLDFEDER, MONTESANO, WEPRIN, COOK, CLARK, RYAN,
  TITUS, AUBRY, SCARBOROUGH, LAVINE, BRAUNSTEIN, CUSICK,  MILLER,  SCHI-
  MEL,  WEISENBERG, BROOK-KRASNY, DenDEKKER, SIMANOWITZ, BRINDISI, SIMO-
  TAS, CYMBROWITZ, THIELE, BENEDETTO, KIM, MORELLE,  SALADINO,  RAIA  --
  Multi-Sponsored by -- M. of A. McDONALD, RA, SANTABARBARA -- read once
  and  referred  to the Committee on Labor -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  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 -- again reported from  said
  committee  with amendments, ordered reprinted as amended and recommit-
  ted to said committee -- recommitted to  the  Committee  on  Labor  in
  accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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:

  Section 1. Section 196-d of the labor law, as added by chapter 1007 of
the laws of 1968, is amended to read as follows:
  S  196-d.  Gratuities.  1.  AN  EMPLOYER  SHALL NOT BE PROHIBITED FROM
ADDING A MANDATORY GRATUITY AS LONG AS: (A) THE CHARGE IS  CONSPICUOUSLY
DISCLOSED TO THE CUSTOMER BEFORE FOOD OR BEVERAGE IS ORDERED; AND (B) NO
EMPLOYER  OR  HIS AGENT OR AN OFFICER OR AGENT OF ANY CORPORATION, SHALL
RETAIN ANY PORTION OF SUCH GRATUITY. THE DISCLOSURE SHALL  USE  ORDINARY
LANGUAGE  READILY  UNDERSTOOD AND SHALL APPEAR IN A TYPE SIZE SIMILAR TO
SURROUNDING TEXT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD00028-13-4

A. 2179--E                          2

  2. No employer or his agent or an officer or agent of any corporation,
or any other person shall demand or accept, directly or indirectly,  any
part of the gratuities, received by an employee, or retain any part of a
gratuity  or  of  any charge purported to be a gratuity for an employee.
This  provision  shall not apply to the checking of hats, coats or other
apparel. Nothing in this subdivision shall be construed as affecting the
allowances from the minimum wage for gratuities in the amount determined
in accordance with the provisions of article nineteen  of  this  chapter
nor as affecting practices in connection with banquets and other special
functions  where  a  fixed  percentage of the patron's bill is added for
gratuities which are distributed to employees, nor  to  the  sharing  of
tips  by  a  waiter with a busboy or similar employee.  AN EMPLOYER THAT
IMPOSES A MANDATORY SERVICE CHARGE, ADMINISTRATIVE  FEE,  OR  ANY  OTHER
SIMILAR  CHARGE WHICH IS NOT DISTRIBUTED TO EMPLOYEES AS GRATUITIES MUST
PROVIDE WRITTEN NOTICE TO CUSTOMERS IN THE  CONTRACT  OR  AGREEMENT  FOR
SERVICES  AND  ON THE CHECK OR INVOICE THAT THE CHARGE IS NOT A GRATUITY
AND WILL NOT BE DISTRIBUTED TO EMPLOYEES WHO PROVIDED SERVICE TO GUESTS,
OR IF ONLY A PORTION OF THE CHARGE IS  DISTRIBUTED  AS  GRATUITIES,  THE
PORTION  DISTRIBUTED  AS  GRATUITIES  MUST  BE IDENTIFIED.   THE WRITTEN
NOTICE TO CUSTOMERS IN THE CONTRACT  OR  AGREEMENT  FOR  SERVICES  SHALL
APPEAR  IN A TYPE SIZE NO SMALLER THAN TWELVE POINT TYPE. THE STATEMENTS
IN THE CHECK OR INVOICE SHALL USE ORDINARY LANGUAGE  READILY  UNDERSTOOD
AND SHALL APPEAR IN A TYPE SIZE SIMILAR TO SURROUNDING TEXT.
  3.  NOTWITHSTANDING  THE FOREGOING, THERE SHALL BE NO LIABILITY TO ANY
ACTION ALLEGING THAT ANY SERVICE  CHARGE,  ADMINISTRATIVE  FEE,  OR  ANY
OTHER  SIMILAR CHARGE IMPOSED AS PART OF A BANQUET HELD PRIOR TO JANUARY
FIRST, TWO THOUSAND ELEVEN WAS A GRATUITY, IF THE EMPLOYER PROVES AS  AN
AFFIRMATIVE  DEFENSE  THAT ALL OF THE FOLLOWING CONDITIONS WERE MET: (A)
THE EMPLOYER OR EMPLOYER'S AGENT DID  NOT  EXPRESSLY  REPRESENT  TO  THE
CUSTOMER  THAT THE CHARGE WAS A GRATUITY; (B) THE EMPLOYER CHARGED SALES
TAX IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE TAX LAW  ON  THE
CHARGE;  (C)  THE  EMPLOYER  INCLUDED  THE  CHARGE  AS PART OF ITS GROSS
RECEIPTS, UPON WHICH INCOME TAX WAS CALCULATED;  AND  (D)  THE  EMPLOYER
PAID  FOOD SERVICE WORKERS WAGES SET FORTH IN SECTION SIX HUNDRED FIFTY-
TWO OF THIS CHAPTER.
  S 2. This act shall take effect immediately.

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GOLDFEDER

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2013-A2179C - Details